FleetCor, CEO Agree to Pay $100 Million Over Hidden Fuel-Card Fees

FleetCor, formerly known as Corpay, and its CEO Ronald Clarke have agreed to pay a $100 million settlement to resolve Federal Trade Commission (FTC) litigation related to hidden costs associated with commercial fuel cards. This agreement follows years of legal action over deceptive billing practices that harmed thousands of small business customers seeking to manage operating costs more effectively.

The FTC accused FleetCor of imposing unauthorized fees, including late penalties, on unsuspecting customers who were unaware of the additional charges. Invoices often omitted fee disclosures, making it difficult for customers to identify the extra costs. These hidden fees, which amounted to hundreds of millions of dollars, were concealed under misleading claims about fuel savings and fraud controls provided by the company.

Regulatory investigations revealed that FleetCor often waited several billing cycles before adding these charges, allowing customers less time to detect the extra costs. Additionally, the company's invoices were often confusing, with fee disclosures buried among unrelated details or even omitted entirely, further complicating the situation for affected customers.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, emphasized that FleetCor deceived its customers by promising fuel savings that never materialized. The FTC's recent 2023 ruling found FleetCor guilty of hidden charges and false representations involving savings, fees, and fraud-control features. A permanent injunction was also granted, prohibiting FleetCor from billing without informed consent and clear disclosures.

The settlement terms require FleetCor and Clarke to provide $100 million to cover restitution for harmed business customers. The Federal Trade Commission (FTC) has accepted this package by a 1-0-1 vote, with Chairman Andrew N. Ferguson recusing himself from the decision. The settlement package is expected to be published in the Federal Register, initiating a 30-day public comment period before commissioners finalize the order.

Customers affected by these hidden fuel-card fees are urged to monitor official FTC updates for more information regarding their restitution. This case serves as a cautionary tale for transportation professionals, highlighting the importance of diligent invoice reviews, vendor oversight, and contract controls to avoid similar pitfalls in billing practices.