- The FTC and Washington state have reached a $600,000 settlement with Riverside Payments Inc., an affiliate, and the company’s owners over allegations of misleading small businesses with potential savings and making it difficult to cancel payment processing agreements.
- The lawsuit alleged Riverside advertised potential savings of nearly 60% for businesses switching payment processing providers, but many customers ultimately paid more than they had with their previous providers. Additionally, it was alleged that Riverside failed to disclose added fees, including a $695 early termination fee and equipment leasing costs through Cascade. The FTC and states further allege that Riverside made it extremely difficult for small businesses to cancel their service agreements despite advertising a “no risk” guarantee when customers signed up.
- The proposed order imposes a $32 million judgment against Riverside, Cascade, and the company owners, which will be suspended upon payment of $600,000 based on their reported inability to pay the full amount. The order also requires the defendants to clearly disclose all material transaction terms before collecting billing information, obtain customers’ informed consent before enrolling them in recurring billing arrangements, and provide a straightforward cancellation process; notify customers of a 60-day period during which early termination fees and other cancellation penalties will be waived, and further prohibits misleading claims about pricing, savings, cancellation terms, earnings, and other material aspects of their services.