Penalty Amount
$45,000,000
Attorney General Keith Ellison announced a $45 million multistate settlement with Block, Inc., the company behind Cash App. The settlement resolves allegations that Block misled consumers about the safety of Cash App, failed to protect users from fraud, and did not provide promised fraud protection and resolution. Block agreed to implement responsible practices including maintaining customer support, offering live support, stopping misleading claims, and fulfilling legal obligations to investigate fraud and reimburse users.
Block must pay $45 million to the states, implement and maintain responsible practices including 24/7 customer support with live phone and chat, stop misleading safety claims, discontinue marketing practices that increase fraud, educate consumers about fraud, and fulfill legal obligations to investigate fraud and reimburse users for unauthorized transactions. Block also committed to distribute between $75 million and $120 million to consumers as part of a separate CFPB settlement.
In-house legal teams should review vendor agreements with payment processing and financial technology providers to ensure they include robust fraud prevention and detection obligations, adequate customer support service level agreements (SLAs) with live human support, clear procedures for investigating and reimbursing unauthorized transactions, and prohibitions on marketing practices that could increase fraud risk. Customer-facing terms of service and privacy policies should be updated to accurately represent security measures and fraud protection, avoiding any misleading claims about safety. Additionally, contracts with marketing vendors should include compliance obligations regarding consumer protection laws and prohibitions on promotions that could facilitate scams.
Entity
Block, Inc.
Industry
Financial Services"Block, Inc."
"$45 million multistate settlement with Block, Inc."
"misled consumers about the safety of Cash App, failed to protect users from fraud on the platform, and didn't provide the fraud protection and resolution that it promised"
"implement and maintain responsible practices to resolve these issues"
"multistate settlement"
"Oregon and Texas led the investigation"
$45.0M
Attorney General Ken Paxton secured a $45 million multistate settlement with Block, Inc. (Cash App) for misleading consumers about the safety of its platform and failing to protect users from fraud. The settlement requires Cash App to maintain 24-hour customer support, cease deceptive safety claims, and fulfill its legal duty to investigate and reimburse unauthorized transactions.
$45.0M
New York Attorney General Letitia James and a bipartisan coalition of 45 other attorneys general secured $45 million from Block, Inc., the company behind Cash App, for misleading users about the platform's security and failing to protect them from fraud. The settlement requires Block to implement changes including maintaining live customer support, stopping misleading marketing, and fulfilling legal obligations to investigate fraud claims and reimburse users for unauthorized transactions.
$45.0M
Attorney General Tong announced a $45 million multistate settlement with Block, Inc., the company behind Cash App, for misleading consumers about the safety of the platform, failing to protect users from fraud, and not providing promised fraud protection and resolution services. The settlement requires Block to implement major reforms including real customer support, transparent communications, and security commitments, and reaffirms Block's commitment to distribute between $75 million and $120 million to compensate consumers as part of a separate CFPB settlement.
$45.0M
Block, Inc. agreed to a $45 million multistate settlement with 46 states for allegedly misleading consumers about the safety of Cash App, failing to protect users from fraud, and not providing promised fraud protection. The settlement requires Block to improve customer support, stop misleading claims, and educate consumers about fraud.
$45.0M
Block, Inc., the parent company of Cash App, agreed to a $45 million multistate settlement with 46 states for misleading consumers about the safety of Cash App and failing to protect users from fraud. The settlement requires Block to improve customer support, stop deceptive marketing, and fulfill legal obligations to investigate fraud and reimburse unauthorized transactions.
$45.0M
Attorney General Phil Weiser announced a $45 million multistate settlement with Block, Inc., the company behind Cash App, for misleading consumers about the safety of the platform and failing to protect users from fraud. The settlement requires Block to implement antifraud measures, provide customer support, and stop deceptive marketing practices.