Protecting America’s Consumers
The Federal Trade Commission stops unfair and deceptive business practices by investigating and bringing law enforcement cases against companies that break the law. Between July 1, 2016 and June 30, 2017, the Bureau of Consumer Protection obtained 168 court orders for more than $12.72 billion.1 The Bureau’s Office of Claims and Refunds supports the Commission’s mission by returning money to the consumers and businesses who were harmed by these illegal practices. This year, the office directed dozens of mailings that resulted in nearly $320 million in refunds, and supported refund programs administered by FTC defendants to deliver more than $6 billion in refunds.
Getting Money Back into People’s Pockets
The goal of FTC law enforcement actions is to halt illegal practices and get refunds to people who lost money. Once an FTC lawsuit or settlement is final, and the defendants have paid the money the court orders, then the Office of Claims and Refunds develops a plan for returning that money to the right people. If there is money left over at the conclusion of the refund program, or if there is not enough money to provide meaningful refund amounts, then the FTC sends the money to the U.S. Treasury, where it is deposited into the General Fund.
In total, FTC cases resulted in more than $6.4 billion in refunds for consumers.2 Here’s a snapshot of refund programs administered by the FTC between July 2016 – June 2017:
- Total amount FTC mailed: $391.38 million
- Number of people who received FTC checks: 6.28 million
- Check cashing rate of first round distributions: 72%
- Average percentage spent on administrative costs: 4.85%
- Money sent to the U.S. Treasury: $655,528
2This number includes a landmark settlement with VW that required the company to offer a buyback program for owners of VW and Audi diesel cars fitted with illegal emissions defeat devices. The VW buyback program resulted in more than $6 billion in refunds during this time period.