PayPal settles with FTC over Venmo disclosure and transfer policies
The FTC filed a complaint against PayPal over its Venmo peer-to-peer payment service back in 2016. The trade commission alleged that Venmo did not adequately disclose that customer transfers to external bank accounts were subject to review and could be frozen or removed. The FTC's filing also said that Venmo misled consumers around privacy as well as how protected their accounts were and violated the Privacy and Safeguard Rules of the Gramm-Leach-Bliley Act . PayPal has just settled with the FTC around these allegations. No monetary penalties have been levied for the infractions. The original complaint stated that many customers were unable to pay real bills like rent when they were unable to transfer their Venmo funds. Other customers complained that they had delivered items (like tickets or other items) to others, taken payment via Venmo, then had the funds removed, resulting in a loss. The FTC settlement agreement requires that Venmo not misrepresent any material restri...