FTC Moves to Return Over $27.6 Million After Crackdown on Hidden Billing Tricks

Agency orders more than $27.6 million returned to people billed without consent

The Federal Trade Commission has announced that it will send more than $27.6 million back to consumers who were charged for subscription products and services they didn’t knowingly buy. The move follows an enforcement action against a network of sellers and payment handlers tied to so-called “negative-option” billing and shipping subscriptions. The money is meant to make up for charges that consumers say were unauthorized or hard to stop.

The refund program is part of a civil settlement the agency reached after finding that the businesses used misleading offers and buried cancellation terms to keep charging people on a recurring basis. The FTC says affected consumers will begin to see payments or notices in the weeks and months ahead.

How the refunds will be calculated and delivered

The agency plans to work with a claims administrator to figure out who gets money and how much. Eligible consumers are expected to be those who were billed after buying trial offers or free shipping deals and then kept seeing repeat charges without clear consent.

Refunds will typically be based on billing records. That means the administrator will look at payment histories and try to identify people who paid for unwanted subscriptions or repeat deliveries. In many cases the amount a person receives will reflect the charges tied to the unlawful billing practices rather than a flat, equal payment to everyone.

Payment methods vary. The FTC often uses electronic transfers, mailed checks, or credits through payment processors when account data is available. Where records are incomplete, the program may ask consumers to submit simple claims or supporting information. The agency says the process will include public notices with clear steps and deadlines; payments and claim windows commonly take weeks or a few months to complete.

What the billing schemes looked like in plain terms

The cases tied to this action involved a few recurring patterns regulators see again and again. One was shipping subscriptions: consumers signed up for a low-cost trial or a free item, then began receiving repeat shipments and monthly charges they did not expect.

Another common tactic was negative-option billing. That means a company charges you automatically unless you opt out. Firms sometimes hide the opt-out steps in dense terms or make cancellation hard to find. The businesses also used catchy marketing claims or pop-up offers that suggested a one-time deal when the real cost came back as a regular charge.

The FTC’s action named a mix of direct sellers and third-party processors that helped move the money. The agency argued that responsibility runs through the whole chain that set up the buying flow and the billing system, not just the visible shopfronts.

What affected consumers should expect and how to check eligibility

People who think they were charged unfairly should watch for a mailed notice or an email from the FTC or the court-appointed administrator. These notices usually spell out who qualifies, what documents (if any) to send in, and the deadline to file a claim.

If you get a notice, it will tell you whether a payment will arrive automatically or whether you need to claim it. If you don’t get a notice but believe you were harmed, look for a public claims website or a phone number listed in the notice to ask about eligibility. Keep receipts, bank or card statements, and any promotional copy you saved — they can help show when and how often you were billed.

How this fits into a bigger push against sneaky billing

This refund program is part of a trend: regulators are paying more attention to companies that use confusing sign-up flows and tough-to-cancel subscriptions. Over the past few years, the FTC has brought similar cases and stressed that clear disclosure and simple cancellation routes are essential.

The practical effect for businesses is rising scrutiny and a growing expectation that companies show pricing and cancellation terms up front. For consumers, the change means more enforcement actions will include direct refunds rather than just fines. The agency’s approach signals it will keep targeting dark patterns that lock people into ongoing charges.