FTC Settles With PayPal Over Venmo Transfers
The FTC settled with PayPal over allegations Venmo customers weren't adequately informed about balance transfer procedures, preventing them from being able to pay bills. PayPal failed to tell customers Venmo balance transfers to external bank accounts could be subject to…
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review, potentially resulting in frozen or removed balances, the agency announced. Its complaint said consumers say “Venmo delayed the withdrawal of funds or reversed the underlying transactions after initially notifying them that the funds were available.” The agency alleged Tuesday Venmo misrepresented information about the amount of protection for consumer accounts from “bank grade security systems,” violating the Gramm-Leach-Bliley Act. No fine was levied, said a PayPal spokeswoman. “This brings to an end the investigation that primarily focused on Venmo platform issues and practices prior to acquisition by PayPal.” She said her company has strengthened privacy and data security practices. PayPal bought Venmo in 2014. “Consumers suffered real harm when Venmo did not live up to the promises it made to users about the availability of their money,” said acting FTC Chairman Maureen Ohlhausen.