Federal Trade Commission (FTC)

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In this episode of Payments Pros, host Keith Barnett examines a recent FTC enforcement action targeting an alleged unlawful subscription scheme involving 15 corporations and eight individuals operating through Cyprus- and Ukraine-based entities with access to U.S. payment rails. Keith discusses the FTC’s continued focus on deceptive advertising, undisclosed recurring charges, unauthorized billing, and burdensome cancellation practices, and explains why these issues carry significant implications for companies operating in the payments ecosystem. He walks through the FTC’s five-stage playbook allegations, including the failure to clearly disclose subscription terms, the use of engaging online tasks to drive purchases, and the deliberate obstruction of cancellation mechanisms. Keith also highlights the broad temporary restraining order agreed to by several defendants, covering asset freezes, foreign asset repatriation, customer data protections, and expedited discovery extending to third-party banks and payment processors. The episode closes with a reminder that the Trump-era FTC remains active and aggressive in the payments space, with businesses advised to prioritize clear disclosures, simple cancellation options, and strong BSA compliance practices.

In this episode of Payments Pros, host Keith Barnett examines a recent FTC enforcement action involving alleged violations of the FTC Act and ROSCA. Keith discusses the FTC’s continued focus on negative option features, automatic renewals, subscription disclosures, free trial conversions, and cancellation practices, and explains why these issues remain important for companies operating in the payments ecosystem. He walks through the FTC’s allegations regarding insufficient disclosure of key subscription terms, including automatic renewal provisions and early cancellation fees, as well as concerns about burdensome cancellation processes for consumers. Keith also highlights how the action reflects a broader enforcement trend, with the FTC remaining active in the payments space despite increased attention on changes at the CFPB. The episode closes with practical takeaways for businesses, including the importance of clear disclosures, simple cancellation mechanisms, and careful internal communications regarding subscription and billing practices.

On June 17, 2026, the Federal Trade Commission (FTC) announced that, at its request, a federal court temporarily halted a sprawling enterprise of alleged deceptive subscription schemes, comprising 15 corporations and eight individuals, from continuing to deceive consumers with hidden costs and recurring charges, while failing to provide simple mechanisms to cancel subscriptions. The FTC filed its complaint in the U.S. District Court for the Northern District of California on a 2-0 commission vote.

On May 13, 2026, the Federal Trade Commission (FTC) filed and simultaneously settled with Shutterstock, Inc. (Shutterstock), an online library of stock photos and videos, for $35 million over allegations regarding its subscription and cancellation practices. The FTC alleged that Shutterstock used deceptive “negative option” features in connection with its annual paid‑monthly subscription plans and on‑demand “packs,” charged consumers without their informed consent, and made it difficult for consumers to cancel. Under a stipulated order for permanent injunction, monetary judgment, and other relief, Shutterstock agreed to pay $35 million in consumer redress and make some changes to how it markets, obtains consent for, and cancels subscription offerings.

The FTC has announced a “Made in the USA” enforcement sweep, bringing three federal actions and issuing two closing letters, following its July 2025 warning letters to companies about “Made in USA” compliance and President Donald Trump’s March 13, 2026, executive order “Ensuring Truthful Advertising of Products Claiming to be Made in America,” directing the agency to prioritize U.S.-origin claim enforcement.

On April 13, a bipartisan coalition of more than two dozen state attorneys general (AGs) submitted a comment letter supporting the Federal Trade Commission’s (FTC) proposed rule targeting so-called “junk fees” in the residential rental market. The coalition’s letter reflects growing concern that alleged undisclosed or misleading rental fees are worsening housing affordability and confusing consumers nationwide. 

Regulators have been steadily tightening the screws on “junk fees” across the economy — from hotel resort fees to “service” and other charges when buying live event tickets. The Federal Trade Commission’s (FTC) rule on unfair or deceptive fees (FTC’s Fees Rule), which took effect on May 12, 2025, is a centerpiece of that effort, requiring businesses to show consumers the full price up front. The latest enforcement action targets one of the biggest players in the live event ticketing market: StubHub.

On March 11, 2026, the Federal Trade Commission (FTC) issued an advance notice of proposed rulemaking (ANPRM) on negative option marketing. The ANPRM restarts the agency’s effort to regulate subscriptions and automatic renewals after the Eighth Circuit vacated the prior “Click to Cancel” rule, from the Biden administration era, on procedural grounds. Comments are due 30 days after Federal Register publication.

The Federal Trade Commission (FTC) has sued JustAnswer LLC and its founder and CEO, Andrew Kurtzig, alleging that the online Q&A platform deceives consumers into costly recurring subscriptions without their informed consent, in violation of the Restore Online Shoppers’ Confidence Act (ROSCA) and Section 5 of the FTC Act.

The Federal Trade Commission (FTC) has sent warning letters to 10 unnamed companies for practices that may allegedly violate its new Consumer Review Rule. The letters flag potential use of fake or misleading reviews, undisclosed insider endorsements, and suppression of negative feedback. The FTC cautions that violations could trigger enforcement actions and civil penalties exceeding $50,000 per violation.