Lead Concepts Inc. reached a $90,000 settlement on Monday with Vermont Attorney General William Sorrell following allegations that the Texas-based company illegally obtained sales leads from senior citizens in the state between 2010 and 2013.
The marketing company allegedly sent out misleading mailers requesting that the recipients reply with their age, as well as their spouse's name and age, with no explanation of what the information would truly be used for. The mailings said that recipients would receive a free senior benefits update upon response.
In reality, the purpose of the mailings was to obtain sales leads for insurance products. Some of the mailings did disclose the true purpose of obtaining the information, but at least 42,000 of them allegedly did not.
Approximately 420 Vermont consumers responded to the mailings, which violated state and federal privacy laws.
“Privacy is a core value in Vermont, and I will vigorously enforce the law to protect it,” Sorrell said.
In addition to paying restitution, the settlement requires Lead Concepts to clearly disclose the purpose of its mailings to consumers in the future.