FTC Probes Block Over Square Customer Support Failures Following Account Freezes
Federal regulators are investigating whether staffing cuts at Block left merchants unable to resolve frozen or deactivated Square accounts.
The Federal Trade Commission is investigating financial technology company Block over inadequate customer service provided to merchants dealing with frozen or deactivated Square accounts, according to a regulatory filing reported by Bloomberg and aggregated by Techmeme (https://www.techmeme.com/261008/p44#a261008p44).
The federal inquiry follows more than 1,500 complaints from merchants who experienced service breakdowns after their accounts were restricted or shut down. Regulators are examining how Block handled merchant support during a period of staffing cuts across the company.
Square serves as a primary payment processing platform for small businesses and merchants. When payment processing accounts are frozen or deactivated without adequate support channels, affected businesses can face immediate disruptions to cash flow and daily operations.
The regulatory probe highlights heightened agency scrutiny over automated merchant management and whether tech platform cost reductions compromise essential customer support obligations.
Sources
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