The Justice Department is asking a federal court to issue a permanent injunction against cash advance firm Dave Inc. and its CEO Jason Wilk, alleging that the company uses misleading marketing tactics to deceive consumers about the amount of its cash advances, charges consumers undisclosed fees, and charges so-called “tips” to consumers without their consent.… Continue Reading
Federal Judge issues injunction against student loan servicer Superior Servicing
A federal judge has issued a temporary injunction against Superior Servicing and its operator Dennise Merdjanian, following FTC allegations that the company claimed to be affiliated with the Department of Education, collected illegal advance fees and made other deceptive claims.
Judge Gloria M. Navarro of the U.S. District Court for the District of Nevada also froze the company’s assets and agreed to the appointment of a receiver.… Continue Reading
Trump designates Andrew Ferguson as next FTC Chair
President-Elect Donald Trump said he has selected Andrew Ferguson to be the next Chair of the FTC. Ferguson is a current Republican member of the commission; he will not have to be confirmed by the Senate to become chair.
He will replace Democrat Lina Khan as FTC chair.
Trump also announced his intention to nominate Mark Meador as a member of the FTC.… Continue Reading
FTC takes action against small business lender Seek Capital
The FTC filed a complaint in the U.S. District Court for the Central District of California against Seek Capital and its CEO, Roy Ferman, alleging that the company operated a bogus business finance scheme that cost small business owners more than $37 million. The FTC alleges violations of the FTC Act, Telemarketing and Consumer Fraud and Abuse Prevention Act, Telemarketing Sales Rule, and Consumer Review Fairness Act of 2016, and requests a temporary, preliminary and permanent injunction, monetary damages and other relief.… Continue Reading
FTC files complaint against online cash advance app Dave
The FTC has filed a complaint against the online cash advance app, Dave, charging that the company used misleading marketing to deceive consumers about the amount of its cash advances and charged consumers undisclosed fees and so-called “tips” without their consent.
The FTC noted that Dave describes the consumers it targets as “financially vulnerable” or “financially coping,” suggesting that Dave knew they were particularly vulnerable to its claims that they could instantly receive up to $500,
In its complaint, filed in the U.S.… Continue Reading
FTC issues final click to cancel rule to make it easier for consumers to cancel enrollment in negative option programs
On October 16, the FTC issued its final amendments to the Negative Option Rule, which now applies to all negative option programs and includes a “click to cancel” provision intended to make it easier for consumers to cancel their enrollment in order to halt continued charges.
“Negative option” is a term used to describe commercial transactions in which an underlying condition or term will continue unless the consumer takes an affirmative action to either cancel the agreement or reject the good or service. … Continue Reading
Citing Jarkesy, Asbury Automotive Group files suit challenging FTC administrative proceeding
One of the country’s largest automotive retailers filed suit against the Federal Trade Commission (“FTC”) on October 4, arguing that the Supreme Court’s recent landmark decision in Securities and Exchange Commission v. Jarkesy requires that complaints such as the one filed against it be filed in court, and not considered in an administrative proceeding.… Continue Reading
Court approves FTC agreement with Invitation Homes; company to pay $48 million, address “junk fee” practices, stop certain other practices
Invitation Homes, the nation’s largest landlord of single-family homes, has agreed to pay $48 million and to stop a significant number of its rental practices, including misleading renters about lease costs and charging undisclosed fees characterized by the FTC as junk fees, according to an agreement approved Sept. 27 by the U.S.… Continue Reading
Regulators Focus on Solar Lending Industry
On August 7, 2024, the CFPB published an Issue Spotlight on the solar lending industry. In conjunction with the CFPB’s Issue Spotlight, the CFPB, U.S. Department of Treasury, and the Federal Trade Commission also issued a Consumer Advisory in connection with solar energy sales. All of this comes on the heels of states increasing scrutiny of solar sales practices.… Continue Reading
FTC, State of Arizona Charge Auto Dealership with Deceiving Consumers
On August 15, 2024, the Federal Trade Commission (“FTC”) and Arizona Attorney General announced a proposed settlement with an Arizona-based vehicle dealership to resolve allegations that the dealership misrepresented prices in online advertisements, engaged in unfair and deceptive practices related to the sale of add-on products, and discriminated against Latino consumers by charging higher interest rates and more expensive add-on charges.… Continue Reading