Block says it will give the FTC the documents it wants in a probe of Square complaints, including claims that sellers' payments were withheld.
Block, the company behind Square, has agreed to hand over documents to the Federal Trade Commission (FTC). The agency has been looking into complaints about Square since January. The complaints involve money that sellers say was held back from them.
In an Oct. 7 filing with the U.S. District Court in San Francisco, the FTC said the complaints allege Block wrongfully withheld at least $2.5 million of Square users' payment proceeds since 2022. The agency added that only a small fraction of injured consumers complain to the government. In its words, these losses may be "just the tip of the iceberg."
The FTC's demand had 47 questions, 21 document requests and four data requests. Under the joint filing, Block will answer the questions and turn over documents that are not legally privileged by Nov. 13. A second batch of information is due by Nov. 30. By year-end, Block will also hand over more documents that match search terms the two sides agreed on by email last month.
The FTC told the court that Block never asked to challenge or change the January demand. It also never asked for more time. That is why the agency went to court in October.
Block is based in Oakland, California, and was founded and is led by Jack Dorsey, who also founded Twitter. Besides Square, which makes the card readers and sales systems many small shops use, it owns Cash App and Afterpay, a buy now, pay later service.
This is the third government demand against Block since 2021, the FTC noted. It cited earlier court requests by the Consumer Financial Protection Bureau and the Washington state attorney general.
Spokespeople for the FTC and Block declined to comment on the filing. They also would not say which time period the complaints cover. The material does not say whether the FTC has found any wrongdoing. Block's lawyers also asked the court to seal some confidential information, which covers presentations to directors and senior executives about fraud prevention and risk management.
Sellers who use Square should keep records of any held or delayed payments. Regulators are watching how such cases are handled.
If you sell with Square, keep records of any held or delayed payments, since regulators are watching how these cases are handled.
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