FTC Sends $15.8 Million to Consumers Deceived by Cleo AI App
The FTC is distributing over $15.8 million to consumers harmed by Cleo AI's misleading cash advance claims and difficult cancellation practices.
The Federal Trade Commission is returning more than $15.8 million to consumers who were misled by Cleo AI, a cash advance app company that regulators say made deceptive claims about the amounts and timing of available cash advances while also making subscriptions difficult to cancel.
The agency charged Cleo AI with deceptively marketing its cash advance services, alleging the company misrepresented what users could expect to receive and when those funds would become available. Regulators also found the company erected barriers designed to obstruct customers attempting to cancel their subscriptions — a practice the FTC has increasingly targeted across the subscription economy.
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The distribution of funds marks the resolution of the FTC's enforcement action against the fintech firm. Consumers who were affected by the company's practices are among those set to receive payments from the settlement pool, which exceeds $15.8 million in total.
The case reflects broader FTC scrutiny of earned-wage access and cash advance apps, a fast-growing segment of consumer fintech. Regulators have signaled concern that some players in the space use opaque fee structures and misleading advertising to attract financially vulnerable users who may not fully understand the product terms before subscribing.
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