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FTC Takes Action Against Florida Lead Generator

May 2, 2016
 

The Federal Trade Commission announced Thursday that the operators of Gigats.com agreed to settle deception charges.

Gigats.com is an education lead-generation company based in Orlando, Fla., that claims to prescreen job applicants for employers. However, the company was instead gathering information for for-profit colleges and career training programs, according to the FTC.

The federal agency alleges that consumers who provided Gigats with personal information typically requested in a job application were directed to call "employment specialists" who steered consumers to enrolling in education programs that paid Gigats for consumer leads.

"The FTC alleges that these so-called advisers falsely claimed to be independent education advisers but in fact only recommended schools and programs that had agreed to pay the defendants, typically from $22 to $125, for consumer leads that met their enrollment requirements," according to a news release.

A proposed court order imposes a $90.2 million judgment that will be suspended upon payment of $360,000. Gigats is operated by Expand Inc., which also does business as EducationMatch and SoftRock Inc.

 
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