WASHINGTON, D.C. — The Federal Trade Commission (FTC) is disbursing over $17 million in refunds to consumers misled by Brigit, an online cash advance provider. The action follows the FTC’s allegations that Brigit engaged in deceptive marketing practices, falsely promising “instant” cash advances and complicating the cancellation process for its services.
Brigit, which promoted itself as providing immediate cash assistance, was found to have misled nearly two million of its customers. The FTC’s complaint, filed in 2023, outlined how the company falsely advertised that subscribers could access cash advances of up to $250 at any time and cancel their membership with ease. Contrary to these claims, consumers often faced unexpected fees for expediting the cash advances and frequently did not receive the funds promised. Additionally, the company employed misleading tactics that confused customers attempting to terminate their subscriptions.
The FTC’s investigation highlighted Brigit’s use of manipulative design elements in its user interface, which effectively trapped consumers in a service they could not easily exit. This practice, often referred to as “dark patterns,” created a significant barrier for users seeking to cancel their subscriptions, further exacerbating consumer frustration and financial strain.
In response to these findings, the FTC is executing a robust refund program to compensate affected consumers. Payments are being directed to 1,818,930 eligible Brigit members, with notifications sent via email up until November 15, 2024. The agency has organized the refund distribution through PayPal, beginning November 18, and recipients are advised to redeem their payments within 30 days to ensure receipt.
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