Facts

The Federal Trade Commission brought a complaint against the National Payment Network Inc. relating to its "Biweekly Payment Program" that it advertised, marketed and sold to consumers through a network of authorized automobile dealerships.

PLAINTIFFS' CONTENTIONS:
The FTC contended that NPN violated provisions of the FTC Act when it failed to disclose material information about fees and failed to disclose program effects. Specifically, it contended that NPN, expressly or by implication, represented that consumers who enrolled in the biweekly payment program would save money when in fact they failed to adequately disclose that consumers would not save money due to NPN's fees, which amounted to more than $775 on the typical contract.

Result

Under the terms of the settlement agreement reached between the parties, NPN was prohibited from making unsubstantiated representations that the payment program would save the consumer money or from misrepresenting other aspects of the program. NPN was also ordered to pay $2,475,000 in refunds or fee waivers to affected customers.

Other Information

COMMISSIONERS: Edith Ramirez (chairwoman), Julie Brill, Maureen K. Ohlhausen, Joshua D. Wright, Terrell McSweeny. FILING DATE: May 4, 2015.