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

On 4 November 2024, the Federal Trade Commission (FTC) announced that it was sending over USD 17 million in refunds to consumers harmed by online cash advance provider Bridge It Inc. (Brigit) in relation to alleged unfair and deceptive claims. The FTC first announced that it had reached a settlement in its lawsuit against Bridge It Inc. (Brigit) on 2 November 2023. 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. The FTC plans to send refunds to over 1.8 million eligible customers from November 18 onwards.