Penalty Amount
$5,000,000
The FTC entered into a settlement with U.K.-based payment processor Paddle to resolve allegations that its unfair payment processing practices facilitated tech support scammers operating in Cyprus. Paddle agreed to pay a $5 million monetary penalty as part of the settlement.
Paddle must pay $5 million to resolve the allegations; no additional remedies are detailed in the referenced 2025 press release.
This enforcement action involves non-privacy unfair payment processing practices facilitating fraud rather than privacy violations. In-house legal teams should review payment processor and vendor agreements for clauses related to fraud liability, unfair practice waivers, and due diligence requirements for downstream clients. No privacy-specific contract clauses require updating based on this action.
Entity
Paddle
Industry
Financial ServicesOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/03/ftc-testifies-joint-economic-committee-agencys-efforts-combat-fraud
paddle will pay 5 million settle ftc allegations unfair paym
https://www.ftc.gov/news-events/news/press-releases/2025/06/paddle-will-pay-5-million-settle-ftc-allegations-unfair-payment-processing-practices-facilitation
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Paddle"
"5-million"
"unfair-payment-processing-practices-facilitation"
"2025/06"
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$1.9M
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