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Mobile browsers and cloud gaming

The CMA is carrying out a market investigation in respect of the supply of mobile browsers and browser engines, and the distribution of cloud gaming services through app stores on mobile devices in the UK.From:Competition and Markets AuthorityPublished10 June 2022Last updated24 January 2024 — See all updatesCase type:MarketsCase state:OpenMarket sector:Electronics, Recreation and leisureOpened:10 June 2022

Contents

  1. Administrative timetable
  2. Market investigation recommenced
  3. Inquiry group changes
  4. Market investigation reference
    1. Market investigation timetable suspended following Competition Appeal Tribunal order and judgment
    2. Invitation to comment on consumer survey draft questionnaire
    3. Responses to the issues statement
    4. Issues statement
    5. Invitation to comment on research agencies
    6. Inquiry group appointed
    7. CMA Board advisory steer
    8. Terms of reference
    9. Decision document
    10. Case opened
  5. Responses to the consultation for the proposed market investigation
  6. Personal information
  7. Contact

Administrative timetable

A revised administrative timetable will be uploaded shortly.

Market investigation recommenced

24 January 2024: The market investigation has now recommenced in accordance a Court of Appeal order dated 30 November 2023. This followed an earlier order by the Competition Appeals Tribunal which had suspended the market investigation from 31 March 2023.

30 November 2023: In a unanimous judgment (available on the National Archives website), the Court of Appeal has determined that the CMA’s decision to make a market investigation reference in relation to the market for mobile browsers and cloud gaming was lawful, setting aside the CAT’s judgment of 31 March 2023.

Inquiry group changes

24 January 2024: Robin Foster has stood down from his role in the inquiry group. David Thomas has been appointed to the inquiry group.

Market investigation reference

Market investigation timetable suspended following Competition Appeal Tribunal order and judgment

31 March 2023: The market investigation timetable was suspended with effect from 31 March 2023 following a Competition Appeal Tribunal judgment and order.

Invitation to comment on consumer survey draft questionnaire

15 February 2023: As part of its investigation into mobile browsing and cloud gaming, the Competition and Markets Authority (CMA) appointed Kantar Public to conduct a quantitative survey of UK consumers who own a smartphone. The below linked Questionnaire notice provides details of the research approach.

The CMA welcomed comments on the draft questionnaire to be used in the proposed survey by 5.00pm GMT 22 February 2023.

Responses to the issues statement

Issues statement

13 December 2022: The issues statement outlines initial theories on what might be affecting competition and potential remedies. It doesn’t set out our findings or conclusions. Parties were invited to provide submissions commenting on the issues and possible remedies. The deadline for submissions on the issues statement was Tuesday 17 January 2023.

Invitation to comment on research agencies

1 December 2022: As part of its browsers and cloud gaming market investigation, the CMA intends to carry out research with consumers and web developers. We have identified a number of firms to undertake this research and comments are invited on potential conflicts of interest or any other restriction on the firms’ suitability to carry out the work.

Consumer research: The central objective for the consumer research is to measure and develop our understanding of consumer behaviour in the mobile browser market, with a particular focus on understanding the drivers of browser choice on smartphone devices. We expect the research will involve both qualitative and quantitative research disciplines and we encourage agencies to propose research methodologies which best address our research objectives.

Web developer research: The central objective for the web developer research is to develop our understanding of the experiences of web developers in relation to browsers and browser engines. We believe qualitative research will be most appropriate for this project but again encourage agencies to propose research approaches which best meet our research objectives.

Inquiry group appointed

22 November 2022: The CMA appointed the inquiry group on 22 November 2022. Margot Daly (Inquiry Chair), Robin Foster, Cyrus Mehta and Claire Whyley.

CMA Board advisory steer

22 November 2022: The CMA Board’s advisory steer to the inquiry group can be found below.

Terms of reference

22 November 2022: The terms of reference for the CMA’s investigation can be found below.

Decision document

22 November 2022: The decision document for the CMA’s investigation can be found below.

Case opened

22 November 2022: The CMA has decided to refer the supply of mobile browsers and mobile browser engines, and the distribution of cloud gaming services through app stores on mobile devices (referred to as ‘mobile browsers and cloud gaming’) for an in-depth Phase 2 market investigation.

On 10 June 2022, the CMA published the final report of its market study into mobile ecosystems. In parallel, we launched a consultation on the proposal to make a market investigation reference into the supply of mobile browsers and mobile browser engines, and the distribution of cloud gaming services through app stores on mobile devices (referred to as ‘mobile browsers and cloud gaming’).

The final report of the mobile ecosystems market study can be found on the Mobile ecosystems market study case page.

Responses to the consultation for the proposed market investigation

22 November 2022: Responses can be found on Mobile browsers and cloud gaming: Proposal to make a market reference consultation page.

Personal information

The CMA may collect, use and share personal data for its market investigations under the Enterprise Act 2002. This includes processing personal data for the purposes of the UK General Data Protection Regulation and the Data Protection Act 2018.

For more information about how the CMA handles personal information, see the CMA’s Personal Information Charter.

Contact

Please send written representations about any competition issues to browsersandcloud@cma.gov.uk.

Published 10 June 2022
Last updated 24 January 2024 + show all updates

Contents

CMA board meeting minutes: December 2023

The minutes of the CMA board meeting on 12 December 2023.From:Competition and Markets AuthorityPublished24 January 2024Get emails about this page

Documents

CMA board meeting minutes: 12 December 2023

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Details

The members of the Competition and Markets Authority (CMA) Board are set out in our ‘Our management’ pages.

Published 24 January 2024

Referral of the proposed subsidy for Eden Project Morecambe by Lancaster City Council

The Subsidy Advice Unit (SAU) has accepted a request for a report from Lancaster City Council (LCC) concerning a proposed subsidy for Eden Project Morecambe.From:Competition and Markets AuthorityPublished8 December 2023Last updated24 January 2024 — See all updatesCase type:SAU referralCase state:ClosedMarket sector:Recreation and leisureOpened:8 December 2023

Contents

  1. Administrative timetable
  2. Final report
  3. Request from Lancaster City Council
  4. Information about the subsidy provided by Lancaster City Council
  5. Information for third parties
    1. Notes to third parties wishing to make a submission
  6. Contacts

Administrative timetable

DateAction
24 January 2024Final report published
21 December 2024Deadline for receipt of any third-party submissions (submissions after 5pm on this date cannot be taken into account)
8 December 2023Beginning of reporting period

Final report

24 January 2024: The SAU has published its report providing advice to Lancaster City Council (LCC) concerning Eden Project Morecambe. The report includes the SAU’s evaluation of LCC’s Assessment of Compliance of its proposed scheme with the requirements set out in the Subsidy Control Act 2022.

Request from Lancaster City Council

8 December 2023: The SAU has accepted a request for a report from LCC concerning a proposed subsidy for Eden Project Morecambe. This request relates to a Subsidy of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of LCC’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy provided by Lancaster City Council

LCC is proposing to award a subsidy to support the construction of Eden Project Morecambe (EPM), a new transformational visitor attraction in the North of England. The subsidy will enable the regeneration of a derelict site on Morecambe’s seafront, formerly the Morecambe Super Swimming Stadium, into a new nationally significant cultural and tourism destination featuring spectacular inter-connecting gardens and shell-like pavilions curated with horticulture, art, and exhibits.

The subsidy is designed to address significant deprivation issues in Morecambe, which like many other seaside towns has faced considerable socio-economic challenges over recent decades. Anticipated benefits of the subsidy award include directly creating 274 jobs, and indirectly creating a further 1,083 jobs in the wider economy through visitor expenditure. EPM provides a once-in-a-generation opportunity to address this decline and deliver permanent change.

The subsidy will be by way of a grant to a special purpose vehicle owned by Eden Project International (EPI). The Eden Trust (parent company) operates as a social enterprise and educational charity with a mission to connect people with the natural world, with a particular focus on wonder, entertainment, and health and wellbeing. The project will also enable collaboration between Eden and Lancaster University resulting in 100 research and development projects with local and regional businesses.

The overall cost of this initial phase of development is estimated to be £100.9 million. LCC intend to award a grant of £50.9 million to EPI. This includes £50 million which LCC have provisionally secured through the Government’s Levelling Up Fund which is administered by the Department for Levelling Up, Housing, and Communities and £900,000 related to the value of the land for the project being sold by LCC at a peppercorn to EPI. The remaining funding will be obtained from a mix of private sources including debt and philanthropy. The project costs include significant construction expenditure and allowance for fit-out.

The subsidy award will be governed by a Grant Funding Agreement (GFA) between LCC and EPI. The GFA will be prescriptive about the use of the subsidy, and the achievement of outputs and outcomes presented in the business case will be closely monitored during delivery. The GFA will include appropriate clawback provisions so that key assumptions underpinning the value of the subsidy award can be reviewed after a successful period of operation.

The land transfer and the award of Levelling Up Fund will be spent by 31st March 2026.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning LCC’s proposed subsidy for Eden Project Morecambe, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Please send your submissions to us at SAU-EdenNorth2023@cma.gov.uk copying the public authority at jnoad@lancaster.gov.uk.

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

  • the SAU will only take your submission into account if it can be shared with LCC. The SAU will send a copy of your submission to LCC together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with LCC using the email address provided above
  • the SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance
  • for further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit

Contacts

Published 8 December 2023

Mergers orders and undertakings register

Register of orders and undertakings that are currently in force, have lapsed and have been released.From:Competition and Markets AuthorityPublished31 March 2014Last updated24 January 2024 — See all updatesGet emails about this page

Documents

Explanatory note

PDF, 123 KB, 3 pages

Enterprise Act 2002 merger remedies in force

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Enterprise Act 2002 merger remedies: lapsed, released and interim measures

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Fair Trading Act 1973 merger undertakings in force

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Fair Trading Act 1973 merger undertakings: lapsed and released

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Details

The register provides details of orders and undertakings under the market investigation and mergers provisions of the Enterprise Act 2002 (EA02).

It also provides details of orders and undertakings under the monopoly and merger provisions of the Fair Trading Act 1973 (FTA73).

The register is arranged into the following sections:

  • EA02 merger remedies in force
  • EA02 merger remedies: lapsed, released and interim measures
  • FTA73 merger undertakings in force
  • FTA73 merger undertakings: lapsed and released

Published 31 March 2014

Hyperion SGPS notifica a aquisição do controlo exclusivo sobre a Hyperion Elvas.

Hyperion SGPS - Hyperion Elvas

Ficha do processo

Ficha do processo

Auchan notifica a aquisição do controlo exclusivo sobre a DIA.

Auchan-Dia

Ficha do processo

Ficha do processo

ACCC to examine prices and competition in supermarket sector

Date

25 January 2024

The ACCC welcomes today’s announcement by the Australian Government that it will direct the ACCC to conduct an inquiry into Australia’s supermarket sector, including the pricing practices of the supermarkets and the relationship between wholesale, including farmgate, and retail prices.

The year-long inquiry will also examine competition in the supermarket sector and how it has changed since the ACCC’s last inquiry in 2008.

“We know grocery prices have become a major concern for the millions of Australians experiencing cost of living pressures,” ACCC Chair Gina Cass-Gottlieb said.

“When it comes to fresh produce, we understand that many farmers are concerned about weak correlation between the price they receive for their produce and the price consumers pay at the checkout.”

“We will use our full range of legal powers to conduct a detailed examination of the supermarket sector, and where we identify problems or opportunities for improvement, we will carefully consider what recommendations we can make to Government,” Ms Cass-Gottlieb said.  

Following the ACCC’s 2008 inquiry, Coles and Woolworths provided enforceable undertakings to the ACCC to remove restrictive tenancy provisions that may have prevented shopping centres from leasing space to competing supermarkets. The ACCC’s investigation identified more than 700 potentially restrictive leases.

“Competitive markets encourage more attractive combinations of price and quality for consumers, as well as greater choice,” ACCC Deputy Chair Mick Keogh said.

“Our inquiry will examine the nature of the current competitive environment between supermarkets, as well as the barriers to greater competition and new entry in the sector.”

“We believe we are well placed to conduct this broad-ranging inquiry and will bring to bear our expertise in competition, consumer law, agriculture and the supermarket sector in particular,” Mr Keogh said.

The inquiry will also look at any emerging issues related to more recent trends, including online shopping, changes in technology, and loyalty programs.

The ACCC expects to publish an issues paper in February seeking views on the key issues it will consider in this inquiry. An interim report will be provided to the Australian Government later this year, and the final report is due to be provided early next year.  

The ACCC will publish the formal direction from the Australian Government, including the terms of reference, when it receives it.

Background

Under Part VIIA of the Competition and Consumer Act, the Treasurer can direct the ACCC to hold a price inquiry into a particular matter.

Such an inquiry allows the ACCC to use its compulsory information-gathering powers to collect information from the relevant parties subject to the inquiry.

The ACCC’s inquiry into the supermarket sector is separate to the Government’s recently announced review of the Food and Grocery Code of Conduct, which relates to the conduct of retailers and wholesalers towards suppliers.

The ACCC currently has a role in promoting compliance with the voluntary Food and Grocery Code, and will be actively contributing to this review of the Code.

The ACCC recently indicated that it has been closely considering reports from consumers alleging false or misleading “was/now” or other pricing “specials” advertised by the supermarkets, and whether they may raise concerns under the Australian Consumer Law. The ACCC’s assessments are ongoing and are entirely separate from this new inquiry into the supermarket sector.

For updates, visit the Supermarket sector inquiry 2024-25.

Release number

06/24

ACCC Infocentre

Contact us to report an issue or make an enquiry.

Media enquiries

Media Team – 1300 138 917, media@accc.gov.au

Commission sends Statement of Objections to six companies in farmed Atlantic salmon cartel case

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The European Commission has informed Norwegian salmon producers Cermaq, Grieg Seafood, Bremnes, Lerøy, Mowi and SalMarof its preliminary view that they breached EU antitrust rules by colluding to distort competition in the market for spot sales of Norwegian farmed Atlantic salmon in the EU.

The Commission has concerns that, between 2011 and 2019, the six salmon producers, exchanged commercially sensitive information, relating to sales prices, available volumes, sales volumes, production volumes and production capacities, as well as other price-setting factors. The suspected aim of this alleged conduct was to reduce normal uncertainty in the market for spot sales of Norwegian farmed Atlantic salmon into the EU.

The alleged anticompetitive conduct only concerns sales on the spot market into the EU, as opposed to sales based on long-term contracts. Spot sales are those for which prices, volumes and other sales conditions are agreed per sale, based on the market conditions on the day of the sale.

Norway accounts for over half of the production of farmed Atlantic salmon worldwide and the EU is its main importer. The alleged conduct concerns sales of fresh, whole and gutted Atlantic salmon farmed in Norway, which accounts for nearly 80% of all farmed Atlantic salmon exported from Norway. The alleged conduct does not concern frozen farmed Atlantic salmon or processed products such as salmon fillets, loins, or smoked salmon.

If the Commission’s preliminary view is confirmed, this conduct would infringe Article 101 of the Treaty on the Functioning of the European Union (‘TFEU’), which prohibits cartels and other restrictive business practices.

The sending of a Statement of Objections does not prejudge the outcome of an investigation.

Background on procedure

Through information received from several market players, the Commission identified concerns in the market for spot sales of Norwegian farmed Atlantic salmon in the EU and it carried out inspections in February 2019 as part of a so-called ‘ex-officio’ investigation.  

A Statement of Objections is a formal step in the Commission’s investigations into suspected violations of EU antitrust rules. The Commission informs the parties concerned in writing of the objections raised against them. The parties can then examine the documents in the Commission’s investigation file, reply in writing and request an oral hearing to present their views on the case before representatives of the Commission and national competition authorities.

If the Commission concludes, after the parties have exercised their rights of defence, that there is sufficient evidence of an infringement, it can adopt a decision prohibiting the conduct and imposing a fine of up to 10% of a company’s annual worldwide turnover.

There is no legal deadline for the Commission to complete antitrust inquiries into anticompetitive conduct. The duration of an antitrust investigation depends on a number of factors, including the complexity of the case, the extent to which the companies concerned cooperate with the Commission and the exercise of the rights of defence.

The Commission has carried out a series of major investigations into cartels in the agri-food sector. The Commission has already fined suppliers of bananas, exotic fruit, canned mushrooms, and canned vegetables.

For more information

More information will be made available under the case number AT.40606 in the public case register on the Commission’s competition website.

For more information on the Commission’s actions against cartels, including on how individuals or companies can report suspicious cartel behaviour see the Commission’s dedicated cartels website. A periodic compilation of antitrust and cartel news is available in the Competition Weekly News Summary and statistics on cartel enforcement.

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Competition is essential to ensure that consumers have access to food at affordable prices. We are concerned that six salmon producers exchanged commercially sensitive information with the aim to limit competition on the market, to the detriment of European customers. The companies concerned now have the possibility to respond to our concerns.

Margrethe Vestager, Executive Vice-President in charge of competition policy

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Competition

Antitrust

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Objections to six companies in farmed Atlantic salmon cartel

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Commission opens in-depth investigation into proposed acquisition of Air Europa by IAG

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The European Commission has opened an in-depth investigation to assess, under the EU Merger Regulation, the proposed acquisition of sole control of Air Europa Holding, S.L. (‘Air Europa‘) by International Consolidated Airlines Group, S.A. (‘IAG‘). The Commission has preliminary concerns that the transaction may reduce competition in the market for passenger air transport services on several domestic, short-haul and long-haul routes in and out of Spain.

IAG and Air Europa operate an extensive network of domestic routes in Spain, short-haul routes within the European Economic Area (‘EEA’) as well as long-haul routes, in particular to and from Latin America.

The Commission’s preliminary concerns

The preliminary investigation indicates that the transaction may reduce competition in the market for passenger air transport services on several domestic, short-haul and long-haul routes. IAG and Air Europa are strong and close competitors in the provision of passenger air transport services on certain routes within, to and from Spain.

In particular, the Commission found that the transaction may reduce competition on:

  • Spanish domestic routes, notably on routes where high speed trains do not provide an alternative, and on routes between peninsular Spain and the Balearic and Canary Islands.
  • Short-haul routes between Madrid and some of the main EEA cities as well as on routes connecting Madrid and Israel, Morocco, the UK and Switzerland, on which both parties offer a direct connection.
  • Long-haul routes between Madrid and North and South America, on which both parties offer a direct connection and face competition from only few other competitors with a non-stop connection.

During its in-depth investigation the Commission will also assess:

  • If the parties’ strong slot portfolio, in particular at Madrid-Barajas airport,could make it harder for other carriers to provide airline services.
  • The likely effects of the transaction on indirect connections, in particular on long-haul routes to South America, where either one or both of the parties have a convenient one-stop connection and where non-stop connections are limited.
  • The likely effects of the transaction on routes on which other airlines rely on access to the parties’ domestic and short-haul network for their own operations, which could affect their services to international destinations also served by IAG.

The transaction was notified to the Commission on 11 December 2023. The Commission now has 90 working days, until 7 June 2024, to take a decision. The opening of an in-depth investigation does not prejudge the outcome of the investigation.

Companies and products

IAG, headquartered in Spain, is a multinational airline holding company listed on the London Stock Exchange, with secondary listings on Spanish Stock Exchanges. It controls the Spanish carrier Iberia Líneas Aéreas de España, S.A. Operadora and the Spanish low-cost carrier Vueling Airlines, S.A., as well as the UK carrier British Airways Plc, the Irish carrier Aer Lingus Limited, and the Barcelona-based long-haul airline FLYLEVEL UK Limited. IAG is the parent company of IAG Cargo Limited. British Airways and Iberia are members of the oneworld alliance.

Air Europa, headquartered in Spain, and its wholly owned subsidiaries constitute the airline division of Globalia. Globalia is a Spanish tourism group headquartered in Llucmajor, Spain. Air Europa is a member of the SkyTeam alliance.

Merger control and procedure

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.

The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).

In addition to this proposed transaction, there are currently 4 on-going Phase II merger investigations: (i) the proposed creation of a joint venture between Orange and MasMovil; (ii) the proposed acquisition of Asiana by Korean Air; (iii) the proposed acquisition of iRobot by Amazon; and (iv) the proposed acquisition of ITA Airways by Lufthansa.

More information will be available on the Commission’s competition website, in the Commission’s public case register under the case number M.11109.

Quote(s)

IAG and Air Europa are leading airlines in Spain and key providers of connectivity within the country and between Spain, the rest of Europe and Latin America. With our in-depth investigation, we want to make sure that the transaction does not negatively affect the prices or the quality of passenger air transport services in and out of Spain.

Margrethe Vestager, Executive Vice-President in charge of competition policy

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FTC Hosts Virtual Tech Summit on January 25 Focused on Artificial Intelligence

January 24, 2024

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WHAT:The Federal Trade Commission’s Office of Technology is hosting a virtual summit to discuss key developments in the rapidly evolving field of artificial intelligence.
WHEN:Thursday, January 25, 2024 Noon ET – 4:30 p.m. ET
WHERE:The event is free and will be held online. Registration is not required to view the webcast. A link to view the summit will be posted to www.ftc.gov the day of the event and on the event page.
WHO:The summit will feature remarks by FTC Chair Lina M. Khan as well as Commissioners Rebecca Kelly Slaughter and Alvaro Bedoya and include three panel discussions with representatives from academia, industry, civil society organizations, and government.
TWITTER/X:Follow the discussion using the hashtag #TechSummitAI.

The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

Press Release Reference

FTC to Host Virtual Summit on Artificial Intelligence

Contact Information

Media Contact

Juliana Gruenwald Henderson 

Office of Public Affairs

202-326-2924

FTC Acts to Stop FloatMe’s Deceptive ‘Free Money’ Promises, Discriminatory Cash Advance Practices, and Baseless Claims around Algorithmic Underwriting

Order requires FloatMe to provide $3 million for refunds, clean up advertising, halt use of dark patterns to impede cancellation, and institute a fair lending program

January 24, 2024

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The Federal Trade Commission is charging online cash advance provider FloatMe and its co-founders with using empty promises of quick and free cash advances to entice consumers to join its service, only to fail to deliver the promised advance amounts, make it difficult to cancel, and discriminate against consumers who receive public assistance. FloatMe is also being charged with making baseless claims that cash advance limits would be increased by an algorithm or another automated system.  

Under the terms of a settlement order, FloatMe, as well as its co-founders Joshua Sanchez and Ryan Cleary, are required to provide $3 million to be used to refund customers, stop the company’s deceptive marketing, make it easier for consumers to cancel their subscriptions, and institute a fair lending program.

“FloatMe lured consumers in with false promises of free money advances, and then used dark patterns to make it difficult for consumers to cancel,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC will continue to hold companies accountable for unfair, deceptive, and discriminatory credit practices, whether they call their products loans, advances, income-share agreements or something else.”

In its complaint against FloatMe, the FTC says that the company charged consumers $1.99 per month to join the app, and promised that consumers could access up to $50 in cash advances instantly as part of their membership.

The FTC said, however, that consumers were only able to access $20 in advances when they signed up and were charged a $4 fee if they wanted to get cash “instantly,” otherwise they had to wait up to three days for the promised funds. This stood in contrast to FloatMe’s ads that said consumers could get “emergency funds” for free “within minutes.”

When consumers contacted FloatMe to request a larger cash advance amount, the company told them that their advance limit could be increased by an algorithm over time, but the complaint charges that the algorithm did not exist. In fact, one company supervisor admitted the company’s claim was “a lie” in an email to colleagues. Instead of an algorithm, the complaint points to a complicated series of steps that required manual intervention to increase a consumer’s limit, which rarely happened.

The complaint also charges that FloatMe used dark patterns and other tricks to make it difficult for customers to cancel their subscriptions. In fact, the complaint alleges that Sanchez acknowledged in an internal communication that the cancellation process “make[s] it difficult for someone to quit.” At first, FloatMe’s cancellation process, according to the complaint, was manual-only, delay-filled, and error-ridden. Even after numerous consumer complaints caused the company to change its cancellation process in 2020, the issues still persisted, including a system that refused cancellation requests without actually informing the consumer of that decision.

FloatMe also illegally discriminated against consumers who receive public assistance like Social Security, military, and unemployment benefits, according to the complaint. The company failed to consider any income received through a public assistance program in determining whether a consumer was eligible to receive an advance, and it declined advances to consumers whose income came from public assistance. Despite this, FloatMe still charged these consumers for its monthly subscription, even though they could not access the main service offered by the company.

The complaint charges that FloatMe’s practices violate the FTC Act, the Restore Online Shoppers’ Confidence Act, and the Equal Credit Opportunity Act.

The court order, which was agreed to by the defendants in the case, requires them to pay $3 million to the FTC to be used to provide refunds to consumers. It also prohibits them from deceiving consumers about their products or services, including misrepresenting that they use an algorithm or artificial intelligence. The order requires them to get consumers’ express, informed consent for charges and provide an easy method for cancellation. The order also prohibits the defendants from deploying discriminatory practices and requires them to enact a fair lending program. In addition, the order requires defendants to create and maintain records of consumer testing, including A/B and multivariate testing, which are real-time experiments that companies can use to steer consumer behavior.

The Commission vote authorizing the staff to file the complaint and stipulated final order was 3-0. The FTC filed the complaint and final orderin the U.S. District Court for the Western District of Texas. The Court entered the order on January 23, 2024.

NOTE: The Commission files a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. Stipulated final orders have the force of law when approved and signed by the District Court judge.

The staff attorneys on this matter are Angel Reyes and James Doty of the FTC’s Bureau of Consumer Protection.

The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

Contact Information

Contact for Consumers

FTC Consumer Response Center

877-382-4357

https://reportfraud.ftc.gov

Media Contact

Jay Mayfield 

Office of Public Affairs

202-326-2656

Casos

Comissão Europeia

AXEL JOHNSON / DUSTIN

Merger

M.11399

Last decision date: 24.01.2024 Super simplified procedure

BLACKSTONE / VISTA / ENERGY EXEMPLAR

Merger

M.11375

Last decision date: 24.01.2024 Simplified procedure

IAG / AIR EUROPA

Merger

M.11109

Last decision date:24.01.2024

Ongoing

Investigation phase: 2

FTC

FloatMe

The Federal Trade Commission is charging online cash advance provider FloatMe and its co-founders with using empty promises of quick and free cash advances to entice consumers to join its service, only to fail to deliver the promised advance amounts, make it difficult to cancel, and discriminate against consumers who receive public assistance. FloatMe is also being charged with making baseless claims that cash advance limits would be increased by an algorithm or another automated system. 

Under the terms of a settlement order, FloatMe, as well as its co-founders Joshua Sanchez and Ryan Cleary, are required to provide $3 million to be used to refund customers, stop the company’s deceptive marketing, make it easier for consumers to cancel their subscriptions, and institute a fair lending program.

Type of Action

Administrative

Last Updated

January 24, 2024

Case Status

Pending

Institucional

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