FTC takes action against deceptive junk fees

The Case

The FTC recently took action against bill payment company Doxo and its co-founders, accusing them of deceptive “junk fee” practices that harmed consumers. The FTC’s complaint alleges that Doxo used misleading search ads and deceptive designs to conceal millions of dollars in “junk fees.”

The complaint also outlines Doxo’s “deceptive” process for signing up consumers for its recurring subscription program. It notes that, until February 2024, after learning of the FTC’s proposed complaint, the company automatically checked the box to sign up consumers when they clicked to read a “terms of service” document.

Why Does This Matter?

The action shows the agency’s focus on holding companies accountable for imposing “junk fees” on consumers. It aligns with the FTC’s recently proposed rule to ban junk fees. 

InnReg's Experience

For over 10 years, InnReg has assisted fintechs in reviewing their fee structures and related disclosures and adhering to strict reporting and recordkeeping requirements to ensure they do not create regulatory risk. 

Learn More About This Topic

For additional details, read how InnReg’s Fintech Compliance checklist can help your fintech build best practices to meet evolving regulatory requirements.

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The Consumer Financial Protection Bureau ("CFPB") issued a Consent Order against San Francisco-based fintech Chime Financial for allegedly withholding refunds beyond the 14-day window for closed accounts established in the Company's agreement with account holders.

FINRA has fined Stifel Independent Advisors, alleging violations of rules regarding nontraditional exchange-traded products (NT-ETPs).

The firm failed to establish and maintain a supervisory system, including WSPs, reasonably designed to supervise the accuracy of order times on its order memoranda.

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© 2024 InnReg LLC

1101 Brickell Avenue
South Tower, 8th Floor
Miami, FL 33131