On November 2, the FTC filed a complaint in the U.S. District Court for the Western District of Washington against a payment processor, an equipment-leasing affiliate, and their owners. The complaint alleges violations of the FTC Act, the Gramm Leach Bliley Act, and Washington’s Consumer Protection Act based on the marketing and sale of payment-processing services and equipment leases.
The complaint alleges that the businesses:
- Made misleading claims about processing costs and savings. Advertising materials allegedly promised savings for their customers, including average savings of $2,000 per year, and quoted rates such as 0% for debit transactions.The agencies allege that the quotes omitted potential fees and that customers often paid more than they had with their previous processors.