According to the Commission, Qualpay violated Section 5 of the FTC Act, which prohibits “unfair or deceptive acts or practices in or affecting commerce.”
In a statement, FTC Bureau of Consumer Protection Director Andrew Smith said, “Ignoring clear signs that your biggest customer is a bogus online business opportunity is no way to operate a payment processing business. And, it’s a sure-fire way to get the attention of the FTC.”
Details of the settlement agreement between FTC and Qualpay
Under the terms of the settlement, the FTC imposes a monetary judgment of or more than $46.78million, which is suspended due to Qualpay’s inability to pay.
The Commission also required the payment processor to surrender any claims to MOBE assets being held by the receiver in the case against the Malaysian company.
Additionally, the FTC prohibited Qualpay from processing payments for business coaching companies or other merchants designated as high-risk. It also prohibits the payment processor from making or assisting merchants in making, deceptive statements to consumers, or working to avoid fraud or risk monitoring programs.
