FTC Attorneys Ask Court to Hold Payment Processors in Contempt for Allegedly Violating 2015 Order

January 19, 2026/Richard Newman

 

The FTC alleges that the company and its operators alleged violations include:

  • Processing hundreds of millions of dollars in payments for at least three clients on Mastercard’s Member Alert To Control High (MATCH) list, which includes merchants terminated for violating card brand rules such as having high chargeback rates. Chargebacks occur when a consumer challenges a credit card transaction because the product or service received is not as described.
  • Assisting and facilitating clients’ tactics to avoid bank and credit card network fraud and risk monitoring programs.
  • Processing transactions for high-risk clients without engaging in a reasonable effort to screen those clients’ business practices to determine if they are, or are likely to be, deceptive.
  • Failing to monitor high-risk clients’ sales and transactional activity to determine whether their businesses are engaged in practices that are deceptive, including ceasing all processing for clients with high chargebacks without establishing those clients were not engaged in deception.

Given their repeated violations of the 2015 order, the company and individuals should be held in contempt and the court should award compensatory relief for injured consumers as well as ordering actions to force the company into compliance, according to the FTC.

The motion was filed in the U.S. District Court for Nevada.

Richard B. Newman is an FTC compliance and defense attorney at Hinch Newman LLP focusing on digital marketing and regulatory defense. 

Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.

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Richard Newman

Richard B. Newman is a nationally recognized FTC advertising compliance, CID investigation and regulatory enforcemetn attorney. He regularly provides advertising counsel and represents clients in high-profile investigations and enforcement proceedings initiated by the Federal Trade Commission, state attorneys general, departments of consumer affairs, and other federal and state agencies with jurisdiction over advertising and marketing practices. Richard is also an ecommerce lawyer and spam defense attorney. His practice additionally focuses upon false advertising defense, data privacy, cybersquatting, intellectual property law and transactional matters relating to the dissemination of national advertising campaigns, including the gamut of affiliate marketing, telemarketing, lead generation, list management and licensing agreements. Richard advises clients on how to minimize the legal risks associated with digital marketing, email marketing, telemarketing, social media influencer campaigns, endorsements and testimonials, negative option marketing models, native advertising, online promotions and comparative advertising,
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About This Blog and Hinch Newman’s Advertising + Marketing Practice

Hinch Newman LLP’s advertising and marketing practice includes two decades successfully resolving some of the highest-profile Federal Trade Commission (FTC) and state attorneys general digital advertising and telemarketing investigations and enforcement actions. As FTC attorneys, the firm possesses superior compliance knowledge and deep legal advocacy experience in the areas of advertising, marketing, lead generation, promotions, e-commerce, privacy and intellectual property law. It has also been selected to author the Consumer Protection Section of the prestigious American Lawyer Media International Federal Trade Commission: Law, Practice and Procedure Treatise, a comprehensive resource for developments of concern to advertisers, marketers and legal professionals that practice before the Commission. Through these advertising and marketing law updates, Hinch Newman LLP provides commentary, news and analysis on issues and trends concerning developments of interest to digital marketers, including FTC and state attorneys general advertising compliance, civil investigative demands (CIDs), and administrative/ judicial process. 

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