Paddle Paddles Back: $5 Million Settlement for Ignoring Fraudulent Tech Support Scams
Paddle.com agreed to pay $5 million after the FTC accused it of enabling deceptive tech-support schemes. Allegedly, Paddle processed millions for shady operators using fake virus alerts to scam consumers. Now, Paddle must promise to play nice, banishing tech-support telemarketers and improving its screening, like a bouncer at a very nerdy nightclub.
Hot Take:
Paddle.com, the payment processor, just got served a $5 million slice of humble pie by the FTC for playing fast and loose with fraudulent tech-support schemes. Imagine serving bad cake at a party and then having to pay the clean-up bill! Moral of the story: Always check what you’re processing, or you might end up footing the bill for someone else’s scam cake.
Key Points:
- Paddle.com and its U.S. subsidiary are paying $5 million to the FTC for facilitating deceptive tech-support schemes.
- Paddle failed to screen and prevent fraud, enabling scams by Restoro, Reimage, and PC Vark.
- Allegations suggest Paddle knowingly concealed scams affecting older, non-tech-savvy consumers.
- The FTC settlement includes bans and stricter requirements for Paddle’s processing practices.
- Paddle asserts it did not directly process payments for telemarketing but only initial software purchases.
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