Attorney General Jonathan Skrmetti Announces $45 Million Multistate Settlement with Block Inc. Over Deceptive Practices on Cash App
Block Inc. will pay $45 million in a multistate settlement regarding deceptive safety claims and inadequate fraud protection on Cash App.Summary
Attorney General Jonathan Skrmetti has announced a $45 million multistate settlement with Block, Inc., the parent company of Cash App, involving 46 states. The settlement addresses allegations that Block misled consumers by implying Cash App provided bank-level security and failed to protect users from rising fraud. The company specifically targeted unbanked and underbanked populations, promoting direct deposits while failing to provide adequate fraud resolution or customer support.
As part of the agreement, Block must implement significant reforms to improve user protection. These include maintaining robust customer support with specific requirements for live human availability via phone and chat, ceasing misleading marketing regarding app safety, and fulfilling legal obligations to investigate fraud claims and reimburse users for unauthorized transactions.
This settlement complements a separate agreement with the CFPB, which involves Block distributing between $75 million and $120 million to compensate consumers nationwide. The investigation into Block's practices was led by Oregon and Texas.
(Source：Jeffersoncountypost)