Fleetcor shares slide 2.3% as FTC files new complaint alleging company fleeced customers out of millions using fuel cards

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The Federal Trade Commission said Wednesday it has filed an administrative complaint against Fleetcor Technologies Inc. FLT, -2.75% and its Chief Executive Ronald Clarke, for charging customers hundreds of millions of dollars in "mystery fees" related to fuel cards. FleetCor, marketing under the "Fuelman" brand name and through co-branded cards with businesses around the country, "falsely told its business customers that they would save money, be protected from unauthorized charges, and have no set-up, transaction, or membership fees. In reality, according to FleetCor's own records, customers generally have not achieved the advertised per-gallon savings by using FleetCor's cards," the agency said in a statement. The FTC filed suit against Fleetcor in December of 2019 in a federal court with the same set of charges. However, in a ruling earlier in 2021, the Supreme Court ruled that the FTC was not able to seek redress for customers under section 13(b) of the FTC Act. The agency is now seeking such redress by filing the new complaint which alleges the company breached section 5 of the FTC Act. "FleetCor fleeced its customers out of hundreds of millions of dollars through its dishonest practices," said Samuel Levine, acting director of the FTC's Bureau of Consumer Protection. Fleetcor shares were down 2.3% and have lost 5.7% in the year to date, while the S&P 500 SPX, +0.18% has gained 18%.

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