In reality, business customers did not obtain the promised per-gallon saving by using the company’s fuel cards. Therefore, the defendants engaged in deceptive and unfair business practices.
The FTC originally filed its administrative complaint against the company and its CEO in December 2019. However, the Supreme Court ruled earlier this year that the FTC was unable to seek redress for consumers under section 13(b) of the FTC Act.
Section 13(b) of the FTC Act authorizes the Commission to seek preliminary and permanent injuctions whenever it has “reason to believe” that an entity/company is violating or about to violate a provision of law designed to protect consumers. The Commission may ask a court to enjoin the alleged unlawful conduct, pending the completion of an FTC administrative proceeding to determine if the conduct is indeed illegal.
FTC aims to recover funds lost by consumers
To ensure that it can still recover monies lost by consumers or business customers, the FTC filed a new administrative complaint against the defendants for violating Section 5 of the FTC ACT.
