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ARTICLE · 22 NOVEMBER 2023

FTC, Florida Settle With Chargeback Mitigation Company For $150K

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On November 7, the FTC and the State of Florida settled with a chargeback mitigation company and its owners for $150,000. The chargeback company was allegedly using deceptive practices, including...

United StatesConsumer Protection
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Skylar Stoudt
Skylar Stoudt
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On November 7, the FTC and the State of Florida settledwith a chargeback mitigation company and its owners for $150,000. The chargeback company was allegedly using deceptive practices, including referencing disclaimers that were not actually shown to the customers during the checkout process, to prevent consumers from disputing credit card charges through the chargeback process.

In addition to civil penalties, fees and other costs totaling $150,000, the agreed upon settlement will prohibit the chargeback company and its owners from working with certain high-risk clients and using deceptive tactics to stop consumers trying to dispute credit card charges through the chargeback process. The settlement, which was agreed to by the chargeback company, must be approved by a federal judge before it can go into effect.

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