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ARTICLE · 08 OCTOBER 2026

FTC Updates (September 7-11, 2026)

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The Federal Trade Commission announced a $12 million settlement with payment processor Humboldt Merchant Services over allegations of facilitating merchant fraud through unauthorized billing scams, while simultaneously rescinding its 2021 policy statement on health app breaches. The settlement imposes permanent restrictions on processing payments for high-risk merchant categories and prohibits credit card laundering activities.

United StatesConsumer Protection
Tiffany Aguiar
Tiffany Aguiar
Ariana Gilani
Ariana Gilani

Following the holiday weekend, the Federal Trade Commission (FTC) announced a proposed settlement with Humboldt Merchant Services requiring the payment processor to pay $12 million and accept restrictions on servicing certain merchants over allegations that it facilitated merchant fraud and rescinded its 2021 policy statement on breaches by health apps and other connected devices as unnecessary in light of the Commission’s 2024 rule amendments. More on these updates after the jump.

Tuesday, September 8, 2026

Tags: Consumer Protection | Bureau of Consumer Protection | Credit and Finance | Payments and Billing

The FTC announced an action against Humboldt Merchant Services, alleging that the payment processor facilitated payment processing for sham merchants involved in unauthorized billing scams. According to the FTC’s complaint, Humboldt processed payments for more than 1,000 merchants that allegedly operated as shell entities that fraudulent companies, including Legion Media,

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