On January 22, 2024, the Federal Trade Commission (FTC) entered into a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief (the “Order”) with FloatMe Corp. (“FloatMe”), a fintech that offers short-term cash advances through its mobile app, to settle litigation brought earlier in the month against the fintech and two of its principals (collectively, “Defendants”).… Continue Reading
ROSCA
FTC Complaint Alleges Deception and Discrimination in Fintech’s Subscription Cash Advance Offerings
By John A. Kimble & Michael R. Guerrero on
On January 2, the Federal Trade Commission (FTC) filed a complaint against FloatMe Corp. (“FloatMe”), a fintech that offers short-term cash advances through its mobile app, alleging violations of the FTC Act, the Restore Online Shoppers’ Confidence Act (ROSCA), and the Equal Credit Opportunity Act (ECOA). The complaint is similar in its language and allegations to one filed by the FTC against Bridge It, Inc.,… Continue Reading
Seventh Circuit Holds FTC Act Does not Allow Disgorgement to U.S. Treasury
By Elliot Johnson on
In FTC v. Credit Bureau Center, LLC, the Seventh Circuit recently held that Section 19 of the Federal Trade Commission Act does not allow the FTC to deposit excess funds awarded as restitution under Section 19 in the U.S. Treasury as disgorgement.
In the underlying action, the FTC alleged Credit Bureau Center, LLC (“CBC”) used “negative option features” on its websites which offered visitors a free credit report but automatically enrolled them in a $29.94 monthly membership subscription.… Continue Reading
Vonage to pay $100 million in refunds to consumers under FTC consent order settling junk fees and “dark patterns” allegations
By Brian Turetsky on
Posted in FTC, Regulatory and Enforcement
On November 3, 2022, the Federal Trade Commission (“FTC”) announced that it has entered into a consent order with internet phone service provider Vonage to settle allegations that it imposed “junk fees” on consumers and used “dark patterns” that prevented them from cancelling their service. Under the terms of the settlement, Vonage has agreed to pay $100 million in customer refunds, simplify its cancellation process, and enhance its disclosures.… Continue Reading
FTC issues guidance on negative option programs and warns of increased enforcement
By Ballard CFS Group on
Posted in FTC Enforcement, Regulatory and Enforcement
On October 22, the Federal Trade Commission (“FTC”) issued a policy statement providing further guidance on its enforcement of federal law with regard to negative option marketing. The FTC noted in an associated press release that they are “ramping up” enforcement efforts against companies that “trap consumers into subscriptions.” The policy statement is intended to “put companies on notice that they will face legal action if their sign-up process fails to provide clear, up-front information, obtain consumers’ informed consent, and make cancellation easy.”… Continue Reading