On March 25, 2015, the Federal Trade Commission (“FTC”) issued an order alleging that the operators of the website Jerk.com deceived and misled their users concerning the source of content on the website; although the website's operators claimed that the content on the website was posted by other users, the FTC has found that the content came fromFacebook profiles mined by the operators.
The FTC also found that the website misrepresented the benefits of a paid membership; although the website claims that a paid membership allows one to update his profile information and remove negative, the FTC found out that users were not able to do so, even after they paid the fee.
Therefore, the FTC issued an order that requires the website and its operators to delete all personal and customer information that was collected from Facebook within 30 days. The order also prohibits them from selling or disclosing any of that content to others, and requires them to make sure it is attributed to its original source. Furthermore, the order prohibits them from misrepresenting the benefits of becoming a website member.