Venmo is under FTC investigation for possible deceptive or unfair practices

Venmo FTC Investigation

PayPal owned payments system Venmo is currently under investigation by the Federal Trade Commission.

The popular payment app is being investigated for possible deceptive or unfair practices.

The company on Monday said it received a Civil Investigative Demand in March requesting documents and answers to written questions about the service.

Venmo is a free app that allows users to easily transfer money to other users. The company was acquired by PayPal in 2013. Last year Venmo processed $7.5 billion in payments.

Venmo says it is cooperating with the FTC investigation. The company warns that the investigation could lead to enforcement action, operational changes, and substantial costs.

“As a global payments provider, we are completely aligned with regulators in their efforts to ensure that consumers have positive experiences when using our services,” PayPal’s global head of corporate media relations Amanda Christine Miller told CNNMoney.

PayPal and Venmo are not commenting further at this time.

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Written by John Howard

John Howard

John Howard is the Business Editor at BusinessPundit.com. He is an avid watcher of markets, a wallflower of retail, and a fan of disruptive businesses that utilize technology and unique ideas to form brilliant new ways of doing business. He can be reached at College Reviews.