FTC, Florida AG settle with “chargeback mitigation” company

Federal Issues FTC State Attorney General Florida FTC Act Unfair Deceptive Credit Cards Chargeback

On November 7, the FTC and the State of Florida settled with a chargeback company to prevent it from deceiving any consumers who seek to dispute credit card charges. Back in April 2023, the FTC and the State of Florida sued the chargeback company under Section 5 of the FTC Act, 15 U.S.C. § 45, and the Florida Deceptive and Unfair Trade Practices Act (FDUTPA), Chapter 501, Part II, as previously covered by InfoBytes here. A chargeback is a system for consumers to get their money returned when they have a problem with a purchase. The proposed court order was agreed to by the defendants but, before it can go into effect, the order first must be approved by a federal judge.  The final judgment totals $150,000 and prevents the defendants from working with several high-risk clients.