On June 16, 2025, the FTC announced it had reached a settlement with a UK-based payment processor, resolving allegations that the company facilitated deceptive tech-support schemes by processing payments for merchants engaged in misleading practices, including impersonating well-known software brands and using scare tactics to sell unnecessary services in violation of the FTC Act, 15 U.S.C. § 45(a), the FTC's Telemarketing Sales Rule, 16 C.F.R. Pait 310, and the Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8403.
Under the terms of the proposed settlement order, the company is permanently banned from providing payment processing services to certain high-risk merchants, including those offering that engage in telemarketing or use deceptive "pop-up messages relating to security or performance issues on a particular Electronic Device." The company must implement enhanced due diligence and monitoring procedures for high-risk and high-volume clients, including verifying business practices, reviewing marketing materials, and tracking chargeback rates. It is also required to provide clear disclosures and obtain express informed consent for any negative option billing features, and to offer simple cancellation mechanisms for recurring charges. The company must report compliance to the agency and retain relevant records for future oversight.
The company also agreed to pay $5 million in monetary relief.
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