Penalty Amount
$45,000,000
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.
Cash App must pay $45 million, maintain 24-hour customer support, cease misleading safety claims, discontinue marketing practices known to increase fraud, and fulfill its legal duty to investigate and reimburse users for certain unauthorized transactions.
In-house legal teams should review vendor agreements with payment platforms and financial service providers for clauses related to fraud protection, unauthorized transaction liability, and customer support obligations. Particular attention should be paid to representations about platform security and marketing claims, ensuring they are accurate and not misleading. Additionally, contracts should require vendors to maintain adequate procedures for investigating and reimbursing unauthorized transactions, and to comply with all applicable state consumer protection laws. Data processing agreements should also be reviewed to ensure that security measures and incident response protocols meet regulatory standards.
Entity
Block, Inc.
Industry
TechnologyOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-secures-45-million-settlement-cash-app-victims-exposed-fraud-and
Judgement
https://www.texasattorneygeneral.gov/sites/default/files/images/press/Judgement.pdf
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
"Block, Inc., (“Cash App”)"
"$45 million multistate settlement"
"misled consumers about the safety of its platform and failed to provide protection and resolution from fraud as marketed and required by law"
"failed to investigate unauthorized transactions and failed to issue refunds as required by law"
"co-led the multistate investigation into Cash App, which was joined by 45 other states"
"maintain 24-hour customer support and cease misleading safety claims"
$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.
$45.0M
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.