FTC to Refund $15.8M to 2.1M Americans Misled by Cash Advance App Cleo AI
Key Summary
The FTC is sending refunds to over 2.1 million Americans who were misled by a cash advance app, Cleo AI. The agency alleges the app advertised access to 'hundreds of dollars' but failed to deliver, charging extra fees and making subscriptions hard to cancel. Cleo AI agreed to pay $17 million to settle the case. Refunds will be sent via PayPal starting October 27th.
Background
The FTC will be sending refunds to over 2.1 million Americans who were misled by a cash advance app, Cleo AI. The agency alleges the app advertised access to 'hundreds of dollars' but failed to deliver, charging extra fees and making subscriptions hard to cancel. Cleo AI agreed to pay $17 million to settle the case.
Eligible Customers
The FTC plans to send 2,124,796 PayPal payments starting on October 27th. Eligible customers will get an email notice from no-reply@consumersentinel.gov by October 26th. Recipients should accept their PayPal payment within 30 days.
Settlement
Cleo AI agreed to pay $17 million to settle the case and denied wrongdoing. The FTC alleges the app made subscriptions hard to cancel, with some users told they could not cancel until they paid back outstanding advances.
The settlement is a significant step towards addressing the issue of misleading advertising in the financial industry. The FTC's actions demonstrate its commitment to protecting consumers from deceptive practices.
Over 2.1 million Americans will receive refunds via PayPal. Cleo AI agreed to pay $17 million to settle the case. The FTC alleges the app made subscriptions hard to cancel. Refunds will be sent starting October 27th. * Eligible customers should accept their PayPal payment within 30 days.