ETA spotlights FTC action against Paddle, prepares for AI future

As previously reported in The Green Sheet, the UK payment processor Paddle.com Market Ltd., and its subsidiary, Paddle.com Inc. (based in Delaware), will pay $5 million and be permanently banned from processing payments for tech-support telemarketers under a settlement reached with the Federal Trade Commission on June 16 2025. See the full article here.

To delve further into this FtC action, the Electronic Transactions Association is hosting a Spotlight Call on July 17.

FTC's allegations

The FTC found that Paddle opened merchant accounts claiming to be a "merchant of record" or software "reseller," then used these accounts to process card payments on behalf of numerous, unrelated third-party merchants. The commission alleged that:

• Paddle enabled overseas schemes to access the credit card system and collect payments from U.S. consumers, and to evade detection by merchant banks and card networks.
• Paddle facilitated schemes, like Restoro-Reimage, that allegedly used fake virus alerts and pop-up messages to impersonate familiar brands, such as Microsoft or McAfee.
• As the "merchant of record," Paddle charged consumers for automatically renewing subscriptions without clearly disclosing that consumers would incur recurring charges.

Spotlight call

Those who want to learn more about this settlement are invited to join the ETA's Spotlight Call on July 8, 2 p.m. to discuss the implications of the settlement.

Speakers on the call will include Ellen Berge, partner at Venable, and Ed Marshall, partner at Arnall Golden Gregory.

Admission isi complimentary, but an RSVP is required here. If you have questions, contact Scott Talbott at stalbott@electran.org.

Get ready for the future of payments

In addition, on July 17, at 1 p.m. ET, the ETA will host a webinar on agentic AI and payments.

The payments landscape is experiencing its most transformative shift yet. Agentic AI — autonomous artificial intelligence systems that make decisions and execute financial transactions with minimal human intervention — is revolutionizing how commerce happens.

Imagine AI agents that don't just process payments, but actively browse, select, and purchase products on behalf of consumers and businesses. This isn't science fiction — it's happening now, and the implications for our industry are profound.

This 60-minute session will equip you with the knowledge to navigate the autonomous AI revolution and capitalize on emerging opportunities in agentic commerce.

Reserve your spot here today. 

Zoom details will be provided upon registration. If you have questions, contact Jennifer Desjardins at jdesjardins@electran.org.

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