FTC Takes Fuel Card Company To Court Over ‘Hidden Fees’

Federal regulators are taking a major fuel card operation to court, alleging trucker drivers and other consumers were charged millions in hidden fees.

The Federal Trade Commission (FTC) recently filed its second complaint since 2019 against FleetCor and CEO Ronald Clarke over “mystery fees” associated with Fuelman and co-branded cards. The discount cards are widely distributed throughout the country and the FTC claims customers do not typically save the money they are promised. The complaint also states that FleetCor and Clarke knowingly market the fuel cards under the pretense truckers will “be protected from unauthorized charges, and have no set-up, transaction, or membership fees.” According to the FTC, company records indicate otherwise because customers generally do not receive “the advertised per-gallon savings by using FleetCor’s cards.”

Litigation broke out between the FTC and FleetCor in 2019, when officials attempted to gain a court injunction preventing the Georgia-based operation from charging what it called “hidden fees.” The fuel card company fought the claims with lawyers in front of a judge as well as in the court of public opinion.

FleetCor went on the record stating the allegations “are without merit” and vowed, “to vigorously defend ourselves against the FTC in court.” A statement added that the FTC’s claims were “based upon fundamental misconceptions of the company, its customers, and its products.”

It appears the litigation failed to yield the injunctive relief FTC lawyers hoped. The U.S. Supreme Court reportedly decided that the agency was reaching beyond its authority under the FTC Act in AMG Capital Management, LLC vs. FTC. Although industry insiders expected federal regulators to take the loss, the FTC refuses to allow disgruntled consumers to decide FleetCor’s bottom line. A second filing was accompanied by scathing accusations.

“FleetCor fleeced its customers out of hundreds of millions of dollars through its dishonest practices,” acting FTC consumer protection director Samuel Levine reportedly said. “The FTC will do everything it can to get money back to FleetCor’s business customers and unsuspecting fuel card users by refiling this complaint administratively. We will also continue to work with Congress on a broader legislative solution following the Supreme Court’s decision in AMG, which has hindered our ability to recover redress for families and honest businesses.”

The renewed administrative complaint filed by the FTC raises the issue of whether securing fuel cards as a way to lower the cost of owner-operators are a sound decision. Internet platforms routinely tout the benefits of such cards. Some websites that publish Top 10 lists include the Fuelman brand. Some list the card in the Top 5, indicating trucker drivers can save up to 10 cents per gallon of diesel.

Source: overdriveonline.com