Chargebacks911 Responds to FTC Complaint

Chargebacks911 provided a response to the allegations by the Federal Trade Commission (FTC) and Florida Attorney General Ashley Moody.

Chargebacks911 Responds to FTC Complaint


Earlier, the FTC and Ashley Moody initiated legal proceedings against this company, accusing it of committing acts that contribute to fraud in the refund of payments.

Chargebacks911 claims that the complaint contains an incorrect understanding of what role the firm plays in the industry. The company also notes that inaccurate accusations were made against it, which are incorrect from a legal point of view and are not actually such. The firm’s official response to the claims of the FTC and the Florida Attorney General also states that this trial creates a dangerous precedent for all SaaS companies, which may cause a violation of the roles, rights, and obligations of many industry participants.

Since 2012, Chargebacks911 has been specializing in providing support to businesses that, due to the specifics of their activities, face large volumes of chargebacks and disputes. The company, responding to accusations of involvement in illegal actions, declares that compliance with all laws and regulations is a mandatory norm for it and a matter of principle.

The firm emphasizes its willingness to aggressively protect the goals of its business and the confidentiality of customers and to defend corporate ethics and reputation from abuse by the government and its police authorities.

Chargebacks911 emphasizes that its specialization involves providing software solutions to merchants and banks for automating work processes. The complaint filed in federal court contains information that the company allegedly sent screenshots with false information about consumer consent to transactions with credit card companies. Chargebacks911 responds by stating that its activities do not involve interacting with these consumers and charging them money. The company also notes that it does not have access to credit card information.

Separately, Chargebacks911 focuses on the fact that it does not have the right to vote when considering a dispute. All decisions in this process are made only by regulated financial institutions. Consumers have the opportunity to independently waive the refund requirement.

The FTC has sued three sellers who are suspected of involvement in consumer fraud. Chargebacks911 notes that the company is not a regulated payment system or financial institution. Also, the firm does not manage accounts and does not track information exchanged by the seller or anyone else on his behalf. The Company draws attention to the lack of obligations and rights to change sellers’ data, describing such practices as incorrect from a legal point of view.

The Chargebacks911 software is similar to TurboTax or the DocuSign service. Any user can configure packages/templates, fill in/insert information and transfer it to its destination. Turbo Tax or DocuSign does not verify the authenticity of the data being sent.

Chargebacks911 claims that the alleged enforcement of trade commission requirements would be illegal, contractually impossible, and contrary to existing rules and regulated roles in the industry.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.