Venmo Faces Investigation From Federal Trade Commission

May 5, 2024 by
Venmo Faces Investigation From Federal Trade Commission

Venmo’s lot has not been a happy one. With issues about its security and its overall viability in the market, it’s kind of a wonder to see it still up and running.

That may not be an issue much longer, however, as reports note that the Federal Trade Commission (FTC) has turned its gaze to Venmo, targeting it for investigation as revealed in a Securities and Exchange Commission (SEC) filing.

The investigation targeting Venmo is said to focus on “deceptive or unfair practices”, and Venmo itself noted that the company had received a Civil Investigative Demand back in March seeking certain documents along with answers to a set of questions connected to the service.

The FTC later confirmed such an investigation was taking place to CNNMoney, but no further comment was offered.

PayPal’s global head of corporate media relations commented via email: “As a global payments provider, we are completely aligned with regulators in their efforts to ensure that consumers have positive experiences when using our services.”

Venmo, a PayPal property, allows for easy peer-to-peer money transfer, a point that a lot of mobile payment services have been grasping for in recent days.

The company processed a hefty $7.5 billion in payments over the course of 2015, reports note, suggesting that it’s had plenty of interest so far.

The consequences of such an investigation could be disastrous, including not only enforcement actions, but also changes to everyday operations and potentially some major costs.

It should surprise no one that Venmo is visibly cooperating in the investigation, as this helps ensure the best treatment afterward should issues be found in effect.

Just what Venmo’s being investigated for is as yet unclear, but the investigation alone isn’t good news.

Considering what all has happened to Venmo over the years it’s one more brick in a wall of bad news for the company, but given that it’s managed to survive all of that so far, and reach this point, it’s a reasonably safe bet that, somehow, Venmo will carry on and continue to provide payment processing services.

It’s already handled plenty of payments so far, and Venmo has also weathered plenty of storms so far too.

Will this be the last stand for Venmo? Or just one more roadblock to break down? We’ll likely find out either way before too much longer.

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