Penalty Amount
$52,900,000
The FTC filed a motion in federal court seeking to hold payment processor Cliq, Inc. and its operators in contempt for systematically violating a 2015 consent order. The defendants are accused of processing payments for high-risk and prohibited merchants, failing to screen for deceptive practices, and facilitating fraud avoidance tactics. The FTC is requesting at least $52.9 million in consumer relief, a permanent ban on the individuals from payment processing, and appointment of a receiver.
The FTC seeks compensatory relief of at least $52.9 million for consumers, a permanent ban on Andrew Phillips and John Blaugrund from the payment processing business, modification of the 2015 order, and appointment of a receiver to oversee Cliq's compliance.
In-house legal teams should review all vendor agreements with payment processors and customer/merchant agreements for clauses related to compliance with consent orders, fraud prevention, and merchant screening. Specifically, examine representations and warranties regarding lawful processing, obligations to implement and maintain fraud detection and transaction monitoring systems, requirements to maintain and adhere to a prohibited merchant list, and audit/cooperation clauses. Given the allegations of processing for high-risk/prohibited merchants and ignoring red flags, contracts may need amendments to include stricter underwriting standards, mandatory real-time screening against updated prohibited lists, enhanced reporting obligations, and clear termination rights for non-compliance with regulatory orders.
Entity
Cliq, Inc., Andrew Phillips, John Blaugrund
Also known as: Cliq
Industry
Financial ServicesOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/01/ftc-asks-court-hold-payment-processors-contempt-systematically-violating-2015-order
CardFlexMotionContempt
https://www.ftc.gov/system/files/ftc_gov/pdf/CardFlexMotionContempt.pdf
payment processors involved i works scheme settle ftc charge
https://www.ftc.gov/news-events/news/press-releases/2015/03/payment-processors-involved-i-works-scheme-settle-ftc-charges
ftc charges payment processors involved i works scheme
https://www.ftc.gov/news-events/news/press-releases/2014/08/ftc-charges-payment-processors-involved-i-works-scheme
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Cliq, Inc., formerly Cardflex, Inc., along with its operators, CEO Andrew Phillips and Chief Technology and Security Officer John Blaugrund"
"seeking at least $52.9 million in relief for consumers"
"violating their 2015 order with the agency"
"Processing hundreds of millions of dollars in payments for at least three clients on Mastercard’s Member Alert To Control High (MATCH) list"
"Failing to monitor high-risk clients’ sales and transactional activity to determine whether their businesses are engaged in practices that are deceptive"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.