United States of America: Announced settlement in FTC lawsuit against Brigit over alleged unfair and deceptive claims

On 2 November 2023, the Federal Trade Commission (FTC) announced that it had reached a settlement in its lawsuit against Bridge It Inc. (Brigit) over alleged unfair and deceptive claims. The FTC stated that Brigit allegedly assured customers that they would receive instant cash advances of up to USD 250 and locked them into a USD 9.99 monthly membership. The promised USD 250 was allegedly rarely delivered, and consumers were charged USD 0.99 despite the promise of free instant transfers. The company also allegedly used dark patterns and manipulative design tricks to create a misleading cancellation process in breach of the Restore Online Shoppers' Confidence Act (ROSCA). In addition, Brigit allegedly prevented consumers who had an open advance from cancelling their subscriptions and charged USD 9.99 per month to repay the cash advance. Brigit has agreed to a settlement that requires it to pay USD 18 million in consumer refunds and to stop making deceptive marketing promises and preventing customers from cancelling.