FLEETCOR Agrees to Comply With Court Ruling in FTC Case
Payments company FLEETCOR says it has closed out a four-year legal battle with the FTC. The company announced Friday (June 9) that it had received a court order in a marketing practices and disclosure case filed against it by the Federal Trade Commission (FTC). The order, the company said, limits its injunctive relief to FLEETCOR’s U.S. fuel card […]
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Payments company FLEETCOR says it has closed out a four-year legal battle with the FTC.
The company announced Friday (June 9) that it had received a court order in a marketing practices and disclosure case filed against it by the Federal Trade Commission (FTC). The order, the company said, limits its injunctive relief to FLEETCOR’s U.S. fuel card business.
According to a news release, the order requires FLEETCOR to institute disclosure practices, like crediting customer payments on receipt date or giving notice to customers ahead of receiving a new fee. The company said it has already voluntarily implemented “multiple disclosure enhancements” to enhance its customers’ experience.
“FLEETCOR intends to comply with the order, as required by the court. FLEETCOR reiterates that we believe the implementation of this order will not be material to the company’s financial performance,” the company said.
Ron Clarke, FLEETCOR’s CEO and chairman, said in the release that the company was “pleased to close out this chapter of the FTC case.”
The FTC sued FLEETCOR in 2021, alleging the company charged customers “hundreds of millions of dollars” in “mystery fees” connected to their cards.
“FLEETCOR, marketing under the ‘Fuelman’ brand name and through co-branded cards with businesses around the country, falsely told its business customers that they would save money, be protected from unauthorized charges, and have no set-up, transaction, or membership fees,” the commission said in a news release.
The commission said FLEETCOR’s own records show that most customers have not realized the advertised savings by using the company’s cards. The suit stemmed from a 2019 case against FLEETCOR, in which the FTC alleged the company billed clients hundreds of millions in unexpected fees.
The FTC prevailed in court, and FLEETCOR announced last year it would appeal. The company has argued that it has been cooperating with the FTC since 2019 and has addressed the commission’s concerns.
The announcement comes weeks after reports that FLEETCOR was considering selling its prepaid card operations.
A report in late May by Bloomberg Law said the company was working with financial advisers on the potential sale of the unit, which could be valued at $500 million to $1 billion.
In March, FLEETCOR announced it was undertaking a strategic review as it explores a “business simplification initiative” that could include separating one or more of its businesses.
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