WASHINGTON—The Federal Trade Commission and the State of Florida have entered into a settlement with Chargeback911 and its owners that will prohibit the company from working with certain high-risk clients and using deceptive tactics to stop consumers trying to dispute credit card charges through the chargeback process.
In a complaint filed in April 2023, the FTC and Florida charged that, since at least 2016, the “chargeback mitigation” company and its owners, Gary Cardone and Monica Eaton, have used multiple unfair techniques to prevent consumers from winning chargeback disputes.
The FTC and Florida charged that Chargebacks911 sent materials that it knew or should have known were misleading or inaccurate to credit card companies on behalf of their clients, including screenshots of websites that were different than the ones visited by consumers.
The complaint also alleged that Chargebacks911 used its “Value-Added Promotions” service to game the systems that credit card companies use to detect fraud on their payment networks.
Additional Prohibitions
The proposed court order, which was agreed to by the defendants and must be approved by a federal judge before it can go into effect, would prohibit them from providing chargeback mitigation services to high-risk clients who use affiliate marketing and negative option plans to sell certain product types that are often fraudulently marketed.
The order would also prohibit them from knowingly using deceptive or misleading information on behalf of their clients and would prevent them from using techniques like their Value-Added Promotions service to help clients evade fraud-monitoring programs, the FTC said.
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