FTC Calls Out Bill Payment Company's Use Of Dark Pattern Practices

On April 25, the FTC took action against a Washington-based bill payment company and its two co-founders alleging that the company used misleading search ads to impersonate consumers' billers and deceptive design practices to mislead those consumers into paying "junk fees" they tacked on to consumers' bills.

In a complaint filed in the Western District of Washington, the FTC alleged that the company employed misleading "dark pattens" to manipulate consumers into using their platform under the mistaken belief that they had reached their biller's official payment site. Once on the false site, the bill payment company would charge "junk fees" in connection with the processing of payments. The FTC also claimed defendants violated the Restore Online Shoppers' Confidence Act by charging consumers for goods or services before clearly and conspicuously disclosing all materials to the transaction, and obtaining the consumers' informed consent, as well as deceptively