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ARTICLE · 16 FEBRUARY 2024

FTC Settles With Subscription-Based Business For Alleged Discriminatory & Deceptive Practices

Global Advertising Lawyers Alliance (GALA)
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Online cash advance provider FloatMe Corp. will pay $3 million as part of a settlement with the Federal Trade Commission (FTC) for allegations of unfair and deceptive tactics against customers.

United StatesConsumer Protection
Paavana Kumar (Davis & Gilbert LLP)
Paavana Kumar (Davis & Gilbert LLP)
Jeremy Merkel (Davis & Gilbert LLP)
Jeremy Merkel (Davis & Gilbert LLP)
Alexa Meera Singh (Davis & Gilbert LLP)
Alexa Meera Singh (Davis & Gilbert LLP)
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Online cash advance provider FloatMe Corp. will pay $3 million as part of a settlement with the Federal Trade Commission (FTC) for allegations of unfair and deceptive tactics against customers. The settlement, announced January 22 by the FTC, came after the subscription-based business was charged with violating the FTC Act, the Restore Online Shoppers' Confidence Act (ROSCA) and the Equal Credit Opportunity Act (ECOA).

Under the settlement order, FloatMe and its founders agreed to pay the FTC $3 million to refund customers. The order also prohibits the company from making deceptive marketing claims, including mispresenting its use of an algorithm or artificial intelligence, and requires the company to obtain consumers' express, informed consent for charges, simplify the cancellation process and institute a fair lending program.

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