FTC Spot Targets FreeCreditReport

NEW YORK Maybe that tuneful trio that shifts from lousy job to lousy job really will have something bad to sing about now. The Federal Trade Commission tomorrow will take aim at the popular Freecreditreport.com ad campaign. The government organization is releasing two online videos (at www.ftc.gov/freereports and www.YouTube.com/FTCVideos) that explain that AnnualCreditReport.com is the only site where consumers can truly get their credit reports for free.

Consumers have become increasingly concerned about their credit scores because of the tightened availability of credit. The FTC will promote its site as the only one that offers this information with no hidden fees or trial memberships. AnnualCreditReport.com, and the online videos, will be promoted through public relations and a blog outreach. The videos, which are touted as creative and fun, go live tomorrow.

Freecreditreport.com, a division of Experian, is a heavy advertiser. It spent $306 million on measured media last year, per Nieslen Monitor-Plus, to promote its services. One of the services allows users to check their credit, provided they sign up for a free trial membership.

Freecreditreport.com's ad campaign, via The Martin Agency, has earned somewhat of a cult following. It stars three musicians stuck in undesirable jobs because of their credit scores. In the fall, it launched a flurry of new spots showing the down-on-their-luck musicians playing at a Renaissance Fair, working as parking lot attendants and riding a bicycle because they can’t get a car. The site has credited the popularity of the campaign with helping drive traffic.



A rep for AnnualCreditReport.com took aim at the campaign. “Despite the musical claims of some TV commercials, the only authorized source to get your free annual credit report under federal law is AnnualCreditReport.com,” she wrote in an e-mail. “Other sites require users to pay hidden fees or agree to additional services in order to get a free credit report. If consumers don't cancel the service during a short trial period, they're likely to pay membership fees. The FTC encourages consumers not to pay for something they can get for free.”