- The Federal Trade Commission (“FTC”) reached a settlement with rent-to-own payment plan company Prog Leasing, LLC (d/b/a Progressive Leasing) to resolve allegations that Progressive Leasing misled consumers about the true price of their purchases through the company’s plans, which it marketed in thousands of retail stores, in violation of the FTC Act.
- The FTC’s complaint alleged that Progressive Leasing had been inundated by tens of thousands of consumer complaints making it aware that consumers were confused by their payment terms, including being charged interest despite being told that their plans would incur no interest and paying approximately twice the sticker price in many cases.
- Under the terms of the proposed stipulated order, Progressive Leasing will pay $175 million to the FTC for disbursement of refunds to affected consumers. Progressive will also be enjoined from misrepresenting the cost and terms of its plans, and will be required to clearly disclose the total cost to own a product purchased through a plan and to get express, informed consent before charging a consumer for a sale.