FTC Cracks Down On Payments Processor Cliq For Alleged Contempt Of 2015 Court Order

The Federal Trade Commission has taken a firm stance against payments processor Cliq, seeking to hold the company and two of its top executives in contempt of a 2015 court order. According to the FTC, Cliq continued to process payments for indicted merchants, despite being required to take reasonable steps to prevent and detect fraud.

In a press release, the FTC’s director of the Bureau of Consumer Protection, Christopher Mufarrige, stated that Cliq and its operators “flagrantly violated an FTC order requiring reasonable steps to prevent and detect fraud.” The agency is now seeking to force Cliq to pay $52. 9 million in compensatory relief to consumers damaged by the company’s activities. The FTC’s contempt request was filed with the U. S. District Court for Nevada, alleging that Cliq violated numerous provisions of the 2015 order.

Specifically, the agency claims that Cliq processed payments for companies that were expressly prohibited by the order, including a group of merchants that have been indicted for crimes related to this processing. The Cliq executives named in the order are CEO Andrew Phillips and Chief Technology and Security Officer John Blaugrund. The FTC’s actions demonstrate a commitment to holding companies accountable for ignoring red flags and distorting the honest functioning of the U.