Attorney General Ashley Moody has successfully secured a $150,000 settlement from Chargebacks911, a credit card chargeback mitigation company. The settlement follows an agreement reached between Attorney General Moody's Consumer Protection Division, the Federal Trade Commission (FTC), and Chargebacks911 regarding deceptive practices employed by the company to prevent consumers from reversing disputed charges and evading fraud monitoring programs.
As part of the settlement, Chargebacks911 will pay $100,000 in civil penalties and $50,000 in legal costs to the State of Florida. The company had allegedly submitted screenshots to credit card companies, making it appear as though consumers had agreed to payments that were never shown to them. This deceptive tactic was described by Attorney General Moody as "despicable" and a betrayal of the integrity of financial transactions in Florida.
Attorney General Moody expressed her strong disapproval of Chargebacks911's actions and commended her Consumer Protection Division for their success in addressing the issue. She stated, "I am appalled by Chargebacks911 and proud of my Consumer Protection Division's success."
The settlement also includes certain restrictions on Chargebacks911's operations. The company is prohibited from working with high-risk clients who utilize affiliate marketing and negative option plans to sell products that are often fraudulently marketed. Furthermore, the settlement order prohibits the use of deceptive or misleading information on behalf of clients and prevents Chargebacks911 from employing techniques, such as the Value-Added Promotions service, to help clients evade fraud-monitoring programs.
The case against Chargebacks911 was initially filed in April by Attorney General Moody's Office and the FTC. The complaint alleged that the company had sent misleading or inaccurate materials to credit card companies on behalf of clients, including screenshots of websites that differed from those visited by consumers. It was also alleged that Chargebacks911 had utilized its Value-Added Promotions service to bypass the fraud detection systems employed by payment networks.
It is worth noting that Chargebacks911 has previously served numerous companies that have been sued by the FTC for deceiving consumers, including Apex Capital, F9 Advertising, and AH Media. The complaint highlighted that Chargebacks911 had disputed tens of thousands of chargebacks on behalf of these disreputable companies.
This settlement serves as a significant victory for consumers in Florida, who can now have confidence in their ability to reverse disputed charges and rely on fraud monitoring programs to protect their finances. Attorney General Moody's relentless pursuit of justice in this case demonstrates her commitment to safeguarding the integrity of financial transactions and holding deceptive companies accountable for their actions.
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