Legal Library: Cases and Proceedings

The Federal Trade Commission took action against payment processing company First American Payment Systems and two of its sales affiliates for targeting small- and medium-sized businesses. The FTC alleges that the defendants made false claims about fees and cost savings to lure merchants, many of whom had limited English proficiency. Once merchants were enrolled, the defendants withdrew funds from their accounts without their consent, and made it difficult and expensive for them to cancel the service. Under a proposed federal court order, the defendants will be required to return $4.9 million to harmed businesses, stop their deception, and make it easier for merchants to cancel their services. 

The Federal Trade Commission ordered building services contractor Guardian Service Industries, Inc. (Guardian) to stop enforcing a no-hire agreement that prohibits building owners and managers from hiring Guardian’s employees. In a complaint filed against Guardian, the FTC alleges that Guardian—which operates in New York and New Jersey—includes no-hire agreements in its customer service agreements with residential building owners. These agreements prohibit building owners and competing building service contractors from hiring Guardian’s employees.