On December 30, the Department of Justice (DOJ), at the Federal Trade Commission’s (FTC) referral, filed an amended complaint against an online cash advance provider. The complaint now names the company’s CEO as a defendant, alleging violations of the FTC Act, 15 U.S.C. §§ 45(a), and the Restore Online Shoppers’ Confidence Act, 15 U.S.C. § 8403. Continue Reading FTC and DOJ File Amended Complaint Against Cash Advance Fintech
On November 5, the Federal Trade Commission (“FTC”) filed a complaint against a company in connection with its mobile banking app, alleging violations of Section 5(a) of the FTC Act and Section 4 of the Restore Online Shoppers’ Confidence Act (“ROSCA”) for misleading customers through hidden fees and other deceptive practices. According to the FTC, the app targeted financially vulnerable individuals with surprise “tip” fees, amounting to 15% of cash advances, which was falsely marketed as a charitable donation. While customers were led to believe their tips funded meals for children, only a fraction of the funds was actually donated, while the rest was retained by the company as revenue. Between 2022 and mid-2024, this practice reportedly generated over $149 million for the company.Continue Reading FTC Takes Aim at Mobile Banking App for Deceptive Advertising Practices
On October 16, the FTC announced that it has finalized its “click to cancel” rule, that will require sellers to make it much easier for consumers to cancel subscriptions. The final rule is part of the FTC’s ongoing review of its 1973 Negative Option Rule, which the agency is modernizing to combat unfair or deceptive practices related to subscriptions, memberships, and other recurring-payment programs.Continue Reading FTC Finalizes ‘Click to Cancel’ Rule
On September 13, the CFPB filed a complaint against a nonbank corporation and its CEO, alleging that the company engaged in deceptive and abusive acts through misleading advertising and unjustified, exorbitant fees related to its credit card program. The CFPB claims these actions violate both the Consumer Financial Protection Act and the Truth in Lending Act.Continue Reading CFPB Cracks Down on Credit Services Provider for Gouging and Trapping Consumers
On August 5, the FTC announced a proposed settlement which included a $12 million fine in connection with a complaint it filed against operators of a credit repair operation in May of 2022. The initial complaint alleged that the company violated the Credit Repair Organizations Act, the FTC Act’s prohibition against unfair, deceptive, and abusive acts and practices, and the Telemarketing Sales Rule, by preying on consumers with low credit scores by deceptively promising credit building services they could not deliver on, and taking illegal advance fees. Continue Reading Allegedly Deceptive Credit Repair Scheme Settles with FTC for $12 Million
On July 29, the FTC filed a stipulated order settling claims against an online career-training company on the grounds that it engaged in deceptive advertising. In addition to injunctive relief barring the company from engaging in deceptive acts, the order requires the company to pay a $15.7 million fine and cancel approximately $27.8 in consumer debt. Continue Reading FTC Settles Action Against Online Career-Training Company for Deceptive Advertising
On July 11, the Federal District Court for the Middle District of Florida granted the FTC’s request for a temporary restraining order against operators of a debt relief enterprise that unlawfully charged consumers illegal advance fees.
In the FTC’s July 9 complaint, the Commission alleges that the company and its owners falsely promised to enroll consumers in programs that guaranteed low monthly loan repayments followed by a lump-sum loan forgiveness. In exchange for enrollment in their program, the operators charged consumers advance fees of several hundred dollars followed by monthly fees of as much as $29. The FTC alleges that while the company stated it would apply consumers’ monthly payments to their loan balances, in reality it kept the consumers’ money and moved it offshore. As part of their scheme, the defendants falsely claimed that they were affiliated with the Department of Education.Continue Reading FTC’s Shuts Down Operators of Debt Relief Enterprise
On June 28, the FTC announced it had filed an action in federal court against a California-based student debt relief enterprise for deceptive practices, including unlawfully obtaining advance fees for debt relief, and pretending to be affiliated with the Department of Education for engaging new customers. The U.S. District Court for the Central District of California entered a temporary restraining order on June 24 against the defendants.Continue Reading FTC Files Action Against Student Debt Relief Enterprise
On May 13, the FTC’s amendment to the Safeguards Rule relating to the reporting of data breaches and security incidents, which were announced in October of 2023, became effective.Continue Reading Reminder: FTC Safeguards Rule Notification Requirement Now In Effect
On April 25, the FTC took action against a Washington-based bill payment company and its two co-founders alleging that the company used misleading search ads to impersonate consumers’ billers and deceptive design practices to mislead those consumers into paying “junk fees” they tacked on to consumers’ bills. Continue Reading FTC Calls Out Bill Payment Company’s Use of Dark Pattern Practices
On May 1, the FTC announced a settlement in federal court in the Northern District of Georgia against a payment processing company, along with its former CEO and senior vice president, for the company’s role in handling transactions for a debt-relief company engaging in fraud. The defendants have agreed to a settlement that includes a $10 million payment to compensate affected consumers and tighter restrictions on future business operations.Continue Reading FTC Cracks Down on Payments Processor for Facilitating Fraud