A fuel-card company promised small businesses savings but charged them hundreds of millions in hidden fees; it has now agreed to pay $100 million

A fuel-card provider that marketed its services as a way for small businesses to cut petrol costs has agreed to pay $100 million to resolve allegations that it charged customers hundreds of millions of dollars in undisclosed fees. FleetCor Technologies, now known as Corpay, and its chief executive Ronald Clarke reached a settlement with the Federal Trade Commission after courts found the company had violated consumer protection law. The agreement is intended to provide financial relief to affected businesses following years of litigation over charges customers allegedly did not know they were paying.How FleetCor’s fuel cards allegedly cost small businesses moreAccording to the Federal Trade Commission, FleetCor promoted its fuel cards as a means of helping businesses save money on petrol while managing expenses and controlling spending. However, the agency alleged that the company’s customers, overwhelmingly small businesses, were charged a range of fees that had not been properly disclosed or authorised.The FTC said the charges amounted to hundreds of millions of dollars and affected tens of thousands of customers. The alleged practices included undisclosed fees, charges customers had not agreed to pay and late fees imposed even when businesses had paid on time or had been prevented from making payments on time.The dispute centred on the difference between the savings businesses expected from fuel cards and the costs they allegedly incurred through additional charges. For companies operating vehicles and managing regular fuel purchases, such fees could undermine the financial benefits the cards were supposed to provide.The FTC also alleged that FleetCor misrepresented the savings available through its fuel cards, along with their fraud-control features and associated fees.Why were the charges difficult for customers to noticeThe FTC’s complaint described a billing system that allegedly made additional fees difficult to identify. FleetCor often began charging certain fees only after several billing cycles had passed, according to the agency. This delay meant customers could initially use the cards without seeing the full range of costs.The problem was compounded by the way bills were presented. The FTC alleged that FleetCor’s invoices did not clearly show that fees were being charged, leaving customers to consult separate account-management reports to find them. Even there, some charges were buried among other information or were missing altogether.For businesses trying to keep track of fuel spending, this arrangement allegedly made it harder to understand what they were being charged and whether the cards were delivering the promised savings.The allegations were not limited to poor disclosure. The agency maintained that some charges were unauthorised, meaning customers had neither been properly informed about them nor agreed to pay them.How did the dispute reach the settlementThe FTC first filed its federal court complaint against FleetCor and Clarke in 2019. The case challenged the company’s fee practices and its representations about the benefits of its fuel cards.A major development came in 2023, when a federal district court granted summary judgment to the FTC on all counts. According to the regulator, the court found that FleetCor had imposed hidden or otherwise unauthorised fees and misrepresented the savings and charges associated with its cards.The court also imposed a permanent order restricting the company’s conduct. FleetCor was prohibited from billing customers for charges without their informed consent and clear, unavoidable information about those charges. The order also barred the company from concealing important fee information behind hyperlinks and from making deceptive claims about its fuel cards.The litigation continued beyond that ruling. In 2026, a federal appeals court upheld the judgment against FleetCor on all counts and affirmed the permanent injunction. It also upheld the judgment against Clarke on all but one count, while vacating the injunction as it applied to him.These court decisions established the legal backdrop for the subsequent agreement with the FTC.What does the $100 million agreement coverThe September 2026 settlement provides for FleetCor and Clarke to pay $100 million to resolve the FTC’s administrative action. The agency said the money would be used to compensate business customers harmed by the company’s alleged practices.The settlement is significant because it follows the court findings rather than simply ending an investigation into allegations. The FTC had already secured relief through the federal court proceedings, and the administrative agreement adds a further financial remedy for affected customers.According to the FTC, FleetCor and Clarke have also agreed not to oppose the reimposition of a federal court injunction against Clarke. This provision follows the appeals court decision that upheld most of the judgment against him but vacated the injunction previously imposed in his case.The agreement was accepted by the FTC through a consent process, with the commission recording a 1-0-1 vote. Chairman Andrew N Ferguson was recused from the decision.What restrictions will apply to FleetCorIt requires the company to obtain express and informed consent before billing for charges, while making information about those charges clear and unavoidable.It also prevents FleetCor from hiding important details about fees behind hyperlinks. This is intended to ensure that customers can understand the costs associated with their accounts without having to search through separate documents or navigate away from the information presented to them.The order further prohibits deceptive claims about the company’s fuel cards. That restriction addresses the FTC’s allegations that FleetCor overstated the savings businesses could achieve and misrepresented features linked to fraud protection and fees.The FTC noted that violations of a final consent order could carry civil penalties of up to $53,088 for each violation.The settlement is designed to return money to customers who suffered losses from FleetCor’s practices. However, the FTC’s announcement did not specify individual payment amounts or provide a detailed timetable for distributing the funds.You use AI every day. Now get your AI Quotient. Take the AIQ test.