WASHINGTON, D.C. — U.K.-based payment processing company Paddle.com Market Limited and its subsidiary, Paddle.com, Inc., have agreed to pay $5 million and will be permanently barred from handling payments for tech-support telemarketers. The settlement follows allegations by the Federal Trade Commission (FTC) that Paddle facilitated deceptive foreign schemes targeting U.S. consumers, including older adults, resulting in millions of dollars in losses.
According to the FTC’s complaint, Paddle improperly processed payments for fraudulent tech-support operations, including the operation Restoro-Reimage. These schemes allegedly used tactics such as fake virus alerts and pop-ups impersonating trusted brands like Microsoft and McAfee to deceive consumers. Paddle acted as a “merchant of record,” enabling these operators to access the U.S. payment system while evading regulatory scrutiny. Additionally, the complaint accused Paddle of unfair practices, such as enrolling consumers in recurring subscription charges without clear disclosures or consent.
“Paddle provided foreign-based tech-support schemes with access to the U.S. payment system, allowing these companies to harm consumers,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC will hold accountable payment companies that knowingly facilitate payments for scammers or look the other way when faced with red flags about their clients’ conduct.”
The settlement imposes several restrictions on Paddle. The company is permanently prohibited from processing payments for tech-support merchants engaged in telemarketing or using pop-up messages related to computer security or performance. Paddle must also implement robust client screening and monitoring processes, clearly disclose subscription terms to consumers, obtain informed consent for recurring charges, and provide accessible cancellation options.
The $5 million payment from Paddle will contribute to funds designated for consumer redress, supplementing a previous $26 million settlement paid by Paddle’s client, Restoro-Reimage, in March 2024 for related violations.
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