FLEETCOR Technologies, Inc (NYSE: FLT) and its CEO Ronald Clarke are facing a new administrative complaint for allegedly defrauding small businesses by charging them hidden fees associated with fuel cards.

FLEETCOR markets its fuel card services under the brand name "Fuelman" and through co-branded cards around the United States. Its business customers provide FLEETCOR fuel cards to their employees to use in refueling company vehicles.

On Thursday, the Federal Trade Commission (FTC) voted to issue a new administrative complaint against FLEETCOR and Clarke. The federal consumer protection watchdog believes that the company and its CEO violated the Section 5 of the FTC Act.

FTC's allegations against FLEETCOR and its CEO Ronald Clarke

The FTC alleged that FLEETCOR and Clarke fleeced hundreds of millions of dollars in hidden fees associated with fuel cards from its business customers.

FLEETCOR and Clarke allegedly falsely told business customers that FLEETCOR fuel cards would allow them to save money on fuel costs. The defendants also falsely claimed that the company's fuel cards have no set-up, transaction, or membership fees and business customers will be protected from unauthorize charges.

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.

The Commission can start its administrative proceedings against FLEETCOR and Clark following the issuance of the new adminitrative complaint.

In a statement, FTC Bureau of Consumer Protection Acting Director Samuel Levine said the company "fleeced its customers out of hundreds of millions of dollars through its dishonest practice."

“The FTC will do everything it can to get money back to FleetCor’s business customers and unsuspecting fuel card users by refiling this complaint administratively. We will also continue to work with Congress on a broader legislative solution following the Supreme Court’s decision in AMG, which has hindered our ability to recover redress for families and honest businesses," added Levine.

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