United States of America: Announced FTC lawsuit against Dave Inc. for alleged misleading marketing pertaining to cash advances (Case No. 2:24-cv-9566)

Description

Announced FTC lawsuit against Dave Inc. for alleged misleading marketing pertaining to cash advances (Case No. 2:24-cv-9566)

On 5 November 2024, the Federal Trade Commission (FTC) filed a lawsuit at the United States District Court of California against Dave, a digital banking service with a primary focus on cash advances. The lawsuit claims that Dave engaged in deceptive advertising and unfair billing practices on financially vulnerable consumers. FTC claimed that Dave misled users by promoting instant cash advances of up to USD 500, while most users received significantly lower amounts. They were also required to pay undisclosed express fees of USD 3 to USD 25 to access funds instantly. The lawsuit accuses Dave of charging a default tip of 15% on advances, falsely claiming that these charges would fund charitable meals. It was also highlighted that Dave imposed a USD 1 monthly subscription fee without clear consent, with difficult cancellation processes. The FTC sought a permanent injunction, monetary relief, and other remedies under the FTC Act and the Restore Online Shoppers' Confidence Act.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
digital payment provider (incl. cryptocurrencies)
Implementation Level
national
Government Branch
executive
Government Body
consumer protection authority

Complete timeline of this policy change

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2024-11-05
under deliberation

On 5 November 2024, the Federal Trade Commission (FTC) filed a lawsuit at the United States Distric…

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