Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 1 of 24 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF GEORGIA 

FEDERAL TRADE COMMISSION, 

 Plaintiff,

 v. 

PROG LEASING, LLC, a limited liability 

company, also d/b/a Progressive Leasing, 

 Defendant. 

Case No. ____________ 

COMPLAINT FOR 

PERMANENT INJUNCTION 

AND OTHER EQUITABLE 

RELIEF 

Plaintiff, the Federal Trade Commission (“FTC”), for its Complaint alleges: 

1. The FTC brings this action under Section 13(b) of the Federal Trade 

Commission Act (“FTC Act”), 15 U.S.C. § 53(b), to obtain temporary, 

preliminary, and permanent injunctive relief, rescission or reformation of 

contracts, restitution, the refund of monies paid, disgorgement of ill-gotten 

monies, and other equitable relief for Defendant’s acts or practices in violation of 

Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), in connection with the marketing, 

offering for sale, and sale of rent-to-own payment plans. 

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JURISDICTION AND VENUE 

2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. 

§§ 1331, 1337(a), and 1345. 

3. Venue is proper in this District under 28 U.S.C. § 1391(b)(2), (c)(2), 

and (d), and 15 U.S.C. § 53(b). 

PLAINTIFF 

4. The FTC is an independent agency of the United States Government 

created by statute. 15 U.S.C. §§ 41-58. The FTC enforces Section 5(a) of the FTC 

Act, 15 U.S.C. § 45(a), which prohibits unfair or deceptive acts or practices in or 

affecting commerce. 

5. The FTC is authorized to initiate federal district court proceedings, by 

its own attorneys, to enjoin violations of the FTC Act and to secure such equitable 

relief as may be appropriate in each case, including rescission or reformation of 

contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten 

monies. 15 U.S.C. § 53(b). 

DEFENDANT 

6. Defendant Prog Leasing, LLC, also doing business as Progressive 

Leasing, (“Progressive”) is a Delaware limited liability company with its principal 

place of business at 256 West Data Drive, Draper, Utah 84020. Progressive 

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transacts or has transacted business in this District and throughout the United 

States. 

7. Progressive employs regional sales employees in this District and 

contracts with retailers located in this District. Georgia is one of the top five states 

in terms of number of Progressive consumers. More than 200,000 Progressive 

consumers reside in Georgia. In addition, Progressive’s parent company, Aaron’s, 

Inc., is a Georgia corporation headquartered in this District. 

COMMERCE 

8. At all times material to this Complaint, Defendant has maintained a 

substantial course of trade in or affecting commerce, as “commerce” is defined in 

Section 4 of the FTC Act, 15 U.S.C. § 44. 

DEFENDANT’S BUSINESS PRACTICES 

9. Defendant markets and sells rent-to-own payment plans to consumers 

at traditional brick-and-mortar and online retailers, including several prominent 

national retailers. 

10. In numerous instances, Defendant has induced consumers to enter into 

rent-to-own payment plans by misrepresenting that consumers will pay only the 

retail, cash, or “same as cash” price to purchase merchandise through Progressive 

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when, in most instances, Defendant charges consumers substantially more than the 

retail price. 

11. Defendant has received tens of thousands of complaints from 

consumers who were misled about the cost of Progressive’s rent-to-own products, 

including more than 15,000 complaints in a single 15-month period. Despite being 

aware of widespread consumer confusion, Defendant continues to employ the same 

practices to lure consumers. 

Background on Progressive 

12. Progressive is a provider of so-called “virtual” rent-to-own services. 

Unlike traditional rent-to-own companies, Progressive does not operate its own 

brick-and-mortar stores. Instead, Defendant markets Progressive’s rent-to-own 

payment plans to consumers shopping at certain retailers’ stores or websites, 

primarily those in the furniture, appliance, jewelry, mattress, automobile 

electronics, and mobile phone industries. 

13. Defendant markets rent-to-own payment plans at more than 24,000 

retail locations in 46 states and the District of Columbia. 

14. Many of these retail stores market a variety of third-party financing 

offers, including some that allow consumers to pay for merchandise over time 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 5 of 24 

without paying any additional fees, charges, or costs over the retail price (e.g., no 

interest if paid in full within 12 months). 

Defendant Misrepresents the Cost of Its Rent-to-Own Products 

15. Because Progressive does not operate its own brick-and-mortar stores, 

many consumers are not familiar with Progressive or its rent-to-own payment plans 

when they go to a retail store or website to shop for merchandise. Nor do they 

typically arrive at the store specifically to purchase merchandise using a rent-toown payment plan. 

16. The first price many of these consumers see when they go to the 

store—and the price that they would expect to pay—is the retail or “sticker” price 

of the merchandise that they are interested in purchasing. 

17. Many consumers only learn about Progressive after seeing an 

advertisement for Progressive in the store or hearing a Progressive sales pitch from 

a store employee. 

Progressive’s Advertisements 

18. Defendant promotes its rent-to-own payment plans through signage at 

retail stores, including banners, posters, table tents, and brochures. While the 

design and content of the advertisements vary, they frequently promote a “90 day 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 6 of 24 

payment option.” The advertisements do not disclose adequately or at all the total 

cost of Progressive’s rent-to-own products, or any fees, charges, or other costs. 

19. Defendant also allows stores to develop marketing materials for 

Progressive’s rent-to-own plans, subject to Progressive’s review and approval. In 

numerous instances, these materials have represented that consumers will only pay 

the retail price, cash price, or “same as cash” price to purchase merchandise 

through Progressive or that there are no extra fees, charges, or costs associated 

with Progressive’s rent-to-own plans. 

20. For example, one retailer has hung a large banner in its store 

advertising a “90 day cash option.” Another retailer’s website has included a page 

where consumers can find information about various finance offers, including 

Progressive’s rent-to-own offer. The page has stated that Progressive offers “90 

days same as cash with no credit check!” 

21. In 2018, Defendant conducted a review of 200 retailers’ online 

advertising. The review found that 37, or 18%, of the retailers represented that 

Progressive offers “90 Days Same as Cash” in online advertisements. 

Representations about Progressive’s Rent-to-Own Plans 

22. Defendant also promotes its rent-to-own plans through in-person sales 

pitches at the retail stores that offer Progressive’s plans. Progressive contracts with 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 7 of 24 

retailers to pitch its rent-to-own plans to consumers and has hired part-time sales 

associates referred to as “Product Sales Specialists” to assist retailers with the 

marketing and sale of Progressive’s plans. 

23. Pursuant to Progressive’s contracts, retailers are required to comply 

with Progressive’s “Retailer Procedures.” These Procedures set forth various 

requirements for interacting with Progressive customers. Progressive can demand 

corrective action to address retailers’ deviations from these requirements, up to and 

including terminating retailers’ relationships with Progressive. 

24. Defendant trains retail sales associates and Product Sales Specialists 

on how to pitch Progressive’s rent-to-own plans. Progressive’s training materials 

mask the true cost of Progressive’s plans and include materials directing sales 

associates to claim that there are no extra fees, charges, or costs associated with 

Progressive’s rent-to-own plans. For example, Progressive’s online training course 

for sales associates includes instructions on how to answer common questions 

posed by consumers. One such question is: “What’s the interest rate like?” If 

asked this question by a consumer, Progressive advises sales associates to respond: 

“There actually isn’t an interest rate, because it’s not a loan.” Progressive directs 

sales associates to refrain from explaining that there are, in fact, additional charges 

to the consumer; specifically, it instructs that an “incorrect” answer would be: 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 8 of 24 

“Well, there’s not an interest rate, but if there was an interest rate, it would be 

something around this much....” 

25. In numerous instances, sales associates and Product Sales Specialists 

have represented to consumers that they will pay only the retail price, cash price, 

or “same as cash” to purchase merchandise through Progressive, or that there are 

no extra fees, charges, or costs associated with Progressive’s rent-to-own plans. 

For example, sales associates and Product Sales Specialists have told some 

consumers that if they pay in 90 days, they will pay only the “cash price” of the 

merchandise or that they can pay “90 days same as cash.” Store associates have 

told other consumers that Progressive’s plans have “no interest” or are “interest 

free.” In other instances, store associates have provided consumers with an 

inaccurate breakdown of their recurring payments that adds up to the retail price of 

the merchandise (e.g., $50 per month for 12 months for a $600 item). 

The Application and Contract Signing Process 

26. Consumers who express an interest in Progressive are directed to 

complete an application. The application format has varied over time, but most 

consumers currently apply using a proprietary Internet-based application platform, 

known as “Approve.Me.” 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 9 of 24 

27. The Approve.Me platform allows consumers to apply for Progressive 

or an alternative form of financing (e.g., revolving credit with 0% interest for 12 

months) through a single application process. 

28. If consumers elect to apply for an in-store credit offer, they are taken 

to an application page and asked to enter various demographic and income 

information. After submitting the application, consumers are taken to a “Results” 

page, where they are informed whether their application for the in-store credit offer 

has been approved. 

29. If consumers’ credit applications are denied, consumers are 

automatically informed that they have been “pre-approved for the Progressive 

Leasing option!” and asked whether they want to continue. In some versions of the 

Approve.Me platform, this message has appeared above the message telling 

consumers that their credit application was denied, as shown in the example below. 

9 
Start About You Address Review Signature Results 

--------l7------.... .,_ _____ ..,. •------~a------~ 

Progressive Leasing-

~ Cong atu a ions! You have been pre-approved* for the 

~ Progressive Leasing optionl 

Lease ID: 1234S67 

Only one more section to fill out before you can qualify for a Progressive Lease. Continue with the 

Progressive Leasing• no credit needed, lease-to-own option? 

., TNs Progn!:SSM! Leastr1g prHpproval «s ba:5«I on l"formatlon JAdlcar,ng that me rustomi!r meets ce,nam cnter1a Pr@--dpproval doM not 

IIUIOi'1'14bC•lty q1.Whfy • cuUOfl\e't fc,r .t l,c:.)~, atd ~tOVM IS not gu.ar.antffd If Prog1e-1i>!.Nf Lf,t11-1"51S. tn1ien, .ore not Met. Fil'Wli1W1DV"l ls bJ-.ed 

upoo rrsponses to questions WI lhe Progress.r.i-P Leinlng appkauoo proces5, Ava kab-•ty hmlted to ehglb~ items 5tt a St<Hl!! •.ssoclolte for detao.ls 

c.,,...,,1 Me<cnam 5lJ!)port w,lh qwwons at (8551 222·0!!01 . 

CD Synchrony Bank was unable lo approve your applleouon ror credit You w,11 rece,ve written nollficatlon m the md1I 

Wllhln 7 IO days 

Appl,cauon ID: 1234567 

Key Number; 1234567890 

CD TI) Bank. N.A. was unable to approve your appllcaoon ror credit. You WIii recetv,: wntten nooficat,on 1n the ma,! 

W\lhln 7· 10 days 

Applicauon ID: 1234567 

Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 10 of 24 

30. Next, consumers are asked to provide various additional information, 

including pay frequency, checking account number, and credit card number. 

31. Upon submitting this information, consumers are directed to a 

“Results” page where they are informed whether they have been approved by 

Progressive, the maximum amount for which they have been approved, and, in 

some cases, the maximum rental term for which they have been approved (e.g., 12 

10 
fj) Progri!Ulve luslng 

Resu ts Cart Cart Revtew Sgn lease Chedcout 

O>-------Or..>-----------<@•1-----~01-------0 

Approval amount remaining; so.oo 

Customer cart review 

Manress 

© cash Price: s1.000.00 

Lease details 

Bi-weekly payment © 

Initial payment © 

Additional lease details 

If you would like to edit your cart please do so now. Your transaction will be finalized a~er your lease is 

created. 

EDIT CART CREATE MYL 

$75.04 

$49.00 

Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 11 of 24 

months). To continue, the sales associate then enters a description of the 

merchandise to be rented and its retail price. 

32. From there, consumers are taken to a “Customer cart review” screen 

where they can see a description of the item to be rented, the “Cash Price,” which 

is the retail price of the item, the amount of each recurring payment, and the initial 

payment amount. Prior versions of this screen have referred to the retail price as 

the “Lease Total,” “Subtotal,” or “Invoice Total.” Below is a screenshot of the 

“Customer cart review” page from a demo version of the Approve.Me platform. 

33. On the same “Customer cart review” page, light gray circles with an 

“i” inside appear beside the words “Cash Price,” “Bi-weekly payment,” and 

“Initial payment.” Even if consumers were to notice and click on these circles, 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 12 of 24 

they would not learn the total amount they have to pay. If consumers click on the 

“Cash Price” circle, a pop-up bubble appears containing the small-print statement: 

“Cash price is the amount you would pay if you purchased the item(s) today.” 

The “Bi-weekly payment” pop-up bubble states: “Your final payment may vary 

but will not exceed your recurring payment amount of $75.04,” while the “Initial 

payment” pop-up bubble states: “Initial Payment is the amount you pay today at 

signing. This amount will be applied to your 90-day purchase option or included 

in the total cost.” 

34. The “Customer cart review” page also contains a line below the initial 

payment and regular payment amounts that reads: “Additional lease details.” The 

text is the same color and size as the other information on the page and less 

prominent than the “CREATE MY LEASE” button. Until approximately August 

2019, a light gray down arrow appeared next to the text. If consumers clicked on 

the arrow, rather than the more prominent “CREATE MY LEASE” button, the 

screen displayed the “90-day purchase option” price, “Lease period,” “Number of 

payments,” “Cost of lease services,” and “Total cost” similar to the following: 

12 
tj) Progres~ Leasing 

Resuits Can Cart Rev ew sign Lease Checko,,Jt 

0 >--------40~-------c@,-- --- ---<O,------O 

Customer cart review 

Man,ess 

Lease details 

Bl-weekly payment © 

Initial payment © 

Additional lease details 

90-day purchase opuon © 

Lease period © 

Number of payments © 

Cost or lease services © 

Total cost © 

See payment details 

Approval amount remalrung: SO 00 

© cash Price; $1,000.00 

S75.04 

S49.00 

Sl,100.00 

12months 

27 

Sl,000.00 

$2,000.00 

IJ-i."-•llduOet.n­

'"'-'-.. ,~"111..,,,-..,._ 

If you would like to edit your cart please do so now. Your transaction will be finalized after your lease Is 

created. 

EOrT CART CREATE MY LEASE 

Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 13 of 24 

35. If consumers click “CREATE MY LEASE,” they are directed to a 

DocuSign web application, where they are presented with a list of fine-print 

disclosures about their agreement, but not the total cost or other terms, such as the 

agreement length or number of payments. To continue, consumers are prompted to 

electronically initial each disclosure and sign at the bottom of the page. Below is a 

sample screenshot of the disclosures page. 

13 
Information and Acknow1edgment 

About your Lease 

Lease No: l ease Dato: 

7570085 

3127/2019 

Your Agreement is a lease-purchase or rental-purchase contract with Prog Leasing, 

LLC ("Progressive Leasing"), or its subsidiary. This is not a loan or credit 

transaction. Your lease includes a 90-day (3 month in California) Purchase Option. 

This purchase option may be for more than the retailer's sale price, not •same as 

cash." 

You und&rstand that by g;gnlng the AQroomMt, Progreulvo loas1ng ~II buy lrom the retailef th.8 metehand,so you aelectod and 

wll then tease thal merchandise IO )'OU 

During the 1am, o1 your Loose. Progress,vo Leasing$ tne owner of Iha morchanchse. Once you've paid your tease in full, 0t 

~

u• exercised a buyOltt option, ownersh1> wil transfer 1o you. The least expenSNe option to purchase tmder the Agreement must be 

AN exerdsed within 90 days of delivery {three calendar months in C81ifoni a). ReglAatly :scheduled tea:so payments are sti.11 due even If 

YnuJn IP.f'ld lo purchase the merchancJlse latef. 

R-s-<W""<f-1n111a1 ff~-] 

lnltHI 

h Looso paylll(tflts wtll bo dedueled avtoma1ically from your bank 30004.Jnt. chargod to your c.Jrd, or made at anothor aulJ'lOOUd 

vendor cw payment proces&or. depending upon information you gave in )'OUr Lease ap~cabon. Chargas wil appear on your 

st:atements as Progressive Rei,t 04' Progressl1,1e Lea~. not the sto,e whefe you selected you, metehandi:se. 

You may stop t-easlllQ at c1ny ume. wllh<>ut !naming a ponalty, and stop My unaccrued payments by recurning the metchandlSG 10 

Progressive lea,.,g. You will not receive a refund if you return the merchand.ise early, Additional)', P~ Leasing's 

Customer Satisfaction Policy alO~ you to canoct your Agfecmenl within fiyc (5) calendar days of signature and rcce!Ve a ful 

refund by coli ng us ot (877)898-1970 ond _ ,;,,go retum ol lhe me«:handioe. 

Your Lease Agreement indUdos rein1tatoment rights thal may allow you 110 get recumed me,chandlw b3ck, as dOiCl'ibed in your 

Agreemenl 

Ful terms ere in your Lease Agreement. which wil be mailed and e-maled to you and ~vailabh, on our Cvstomer Portal. The 

copies s.em are oomputer..generat&d and may 004 lnc:tude your slgnatute. 

You agree by sigring this acknowkldgemont that you ,Md. undOl'Stand, and roooived e copy of tht-& document and your Loaso 

AQreemenL 

.... 

.. 

C1.mOmer Name 

Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 14 of 24 

36. Until August 2019, once consumers signed the acknowledgement at 

the bottom of the disclosures page, the screen auto-scrolled to the last page of the 

agreement, where consumers were prompted to electronically sign the agreement. 

Below is what appeared after consumers signed the acknowledgement at the 

bottom of the disclosures page. 

14 
,._ _,.,. ... ~--io-.u.c----~-(1,t ...... c,t,·- kUof't'Mr: Hutr:-- WQOli 

#7570085 

-~1.,,,.,_.1h,•W • C-,;,-<•-,,....... .. •1" 

Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 15 of 24 

37. While information about the total cost and other terms were contained 

on other pages within the agreement, consumers had to manually scroll up from the 

signature page to find such information. 

38. Upon completing the transaction, consumers have typically received 

only a receipt from the retailer showing the retail price of the merchandise and 

sometimes the amount of their initial payment and Progressive’s contact 

information. The receipt does not show the total cost of Progressive’s rent-to-own 

plans or other payment terms. Progressive emails consumers a link to their 

contracts after they have signed, but instructs retailers to provide consumers a 

printed copy only if they request one. 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 16 of 24 

The Actual Cost of Progressive’s Rent-to-Own Plans 

39. Contrary to Defendant’s representations, unless consumers enter into 

an agreement with Progressive in California, they will always end up paying more 

than the retail price to purchase merchandise through Progressive—often 

substantially more. 

40. Although the precise terms of Progressive’s rent-to-own agreements 

vary depending on a number of factors, including the state in which the transaction 

occurs, the retailer from which the merchandise is purchased, and the retail price of 

the merchandise, the basic terms of Progressive’s rent-to-own agreements are 

largely the same. 

41. The consumer must make an initial payment to Progressive at the time 

the agreement is signed using a credit or debit card. The initial payment amount 

typically ranges from $49 to $79. In states other than California, the initial 

payment is a fee that is added to the retail price of the merchandise. Nevertheless, 

Progressive instructs sales associates not to call the initial payment a fee. Once the 

consumer has signed the agreement and the initial payment has been processed, the 

consumer may take home the merchandise or schedule delivery of it with the 

retailer. 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 17 of 24 

42. At the time the consumer signs the agreement, the consumer is 

automatically enrolled in a 12-month payment plan (or, in the case of a small set of 

consumers at certain retailers, a 15-, 18-, or 24-month payment plan) with weekly, 

biweekly, semi-monthly, or monthly recurring charges, which are automatically 

debited from the consumer’s bank account. 

43. If the consumer makes the initial payment and all of the scheduled 

recurring payments (the “Total Purchase Price”), the consumer typically will pay 

approximately twice the retail price to purchase the merchandise. 

44. Consumers who pay off the merchandise early still pay more than the 

retail price. If consumers pay off the merchandise within 90 days of delivery (the 

“90 Day Payment Option”), they pay the retail price of the merchandise plus the 

initial payment or a markup of up to 20% of the retail price (“90 Day Option 

Amount”). If consumers purchase the merchandise after renting it for more than 

90 days but before the end of the full rental term (the “Early Buyout Option”), they 

pay Progressive a percentage of the remaining balance (typically 65%), plus any 

amount then due or overdue. Using the $1,000 mattress from the above application 

process as an example, if the consumer paid off the mattress after making regular 

payments for six months, the consumer would end up paying $1,658.58. This 

amount is not disclosed to the consumer. 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 18 of 24 

45. Consumers can only use the 90 Day Payment Option if, after signing 

their agreement, they somehow learn before 90 days have passed that they have 

been enrolled in a more costly option and call Progressive to increase their regular 

payment amounts or make additional, unscheduled payments. 

46. Progressive typically charges consumers hundreds of dollars more 

than the retail price. 

Defendant’s Knowledge of Widespread Consumer Confusion and Complaints 

47. Defendant is aware of widespread consumer confusion about 

Progressive’s rent-to-own plans. 

48. Defendant has received tens of thousands of complaints from 

consumers saying they were provided inaccurate or misleading information about 

Progressive’s terms or charges, including more than 15,000 complaints from May 

2017 through July 2018 alone. Specific complaints include: 

 A consumer purchased $1,100 worth of furniture from a national 

retailer. The store associate told her that Progressive was a 12-month 

interest-free program and told her she would be making 12 monthly 

payments that, in total, would equal her $1,100 purchase price. In 

reality, the consumer’s Total Purchase Price was more than $2,000 

and the consumer’s supposed monthly payments were actually 

biweekly payments. 

 A consumer purchased a $700 cell phone from a national retailer. The 

store associate told her that she would just be paying the price of the 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 19 of 24 

phone over 12 months. In reality, the consumer’s Total Purchase 

Price was nearly $1,700, more than twice the retail price of the phone. 

 A consumer purchased a $1,500 mattress from a national retailer. The 

store associate told her that if she paid for the mattress within six 

months of purchase through Progressive, she would pay the cash 

price. In reality, the consumer was signed up for a 12-month lease 

with a Total Purchase Price of more than $3,000. 

 A consumer purchased $2,000 jewelry from a national retailer. The 

store associate told him that if he paid for the jewelry within 90 days 

of purchase through Progressive, he would pay the retail price. In 

reality, the 90 Day Option Amount was $2,200. 

 A consumer purchased $295 jewelry from a local retailer. The store 

associate told her that if she paid for the jewelry within 90 days of 

purchase through Progressive, she wouldn’t be charged fees and that 

her initial payment of $40 went toward her balance. In reality, the 90 

Day Option Amount was $335—the $295 retail price plus the initial 

payment. 

49. Internal Progressive materials show that Defendant knows consumer 

confusion about paying the retail price is prevalent. In a document describing 

Progressive’s categories of consumer complaints, the example provided for the 

complaint category “Wrong Information Given” is: “The retailer gave the 

customer impression that they had a 90 day same as cash option and did not 

explain the mark up.” Similarly, an example provided for the complaint category 

“90-Day Buyout Option” is: “The customer did not understand the cash price 

would be higher than the invoice amount by the IP [initial payment].” 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 20 of 24 

50. Similarly, in a training presentation to Progressive’s customer service 

representatives, examples of reasons why consumers complain include: the plan 

was “explained as 90 days same as cash,” the consumer “didn’t know the amount 

owed would go up after 90 days,” and the consumer “didn’t know the initial 

payment wouldn’t go toward the amount owed.” 

51. Retailers have also flagged concerns with the training materials. For 

example, in 2016, a regional director sent Progressive employees an email relaying 

the concerns of a sales associate who had taken the training course. The sales 

associate found the answer to the question “what’s the interest rate like?”—i.e., 

“there actually isn’t an interest rate, because it’s not a loan”—deceptive. 

Specifically, the sales associate wrote: 

This is false because there is, in fact, a form of interest and telling a 

guest there’s no interest when they see in the final paperwork that 

they’re actually paying 150% more (give or take) at 12 months would 

make us look like shady sales people. 

Nevertheless, this question and answer continue to appear unchanged in the 

online training course. 

52. Based on the facts and violations of law alleged in this Complaint, the 

FTC has reason to believe that Defendant is violating or is about to violate laws 

enforced by the Commission. 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 21 of 24 

VIOLATIONS OF THE FTC ACT 

53. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or 

deceptive acts or practices in or affecting commerce.” 

54. Misrepresentations or deceptive omissions of material fact constitute 

deceptive acts or practices prohibited by Section 5(a) of the FTC Act. 

Count I 

55. In numerous instances in connection with the advertising, marketing, 

promotion, offering for sale, or sale of rent-to-own plans, Defendant represents, 

directly or through retailers, expressly or by implication, that consumers will pay 

the retail or cash price to purchase merchandise. 

56. In truth and in fact, in numerous instances in which Defendant has 

made the representations set forth in Paragraph 55, consumers who entered into a 

rent-to-own agreement with Progressive paid more than the retail or cash price to 

purchase the merchandise, often substantially more. 

57. Therefore, Defendant’s representations as set forth in Paragraph 55 

are false and misleading and constitute deceptive acts or practices in violation of 

Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 22 of 24 

CONSUMER INJURY 

58. Consumers are suffering, have suffered, and will continue to suffer 

substantial injury as a result of Defendant’s violations of the FTC Act. In addition, 

Defendant has been unjustly enriched as a result of its unlawful acts or practices. 

Absent injunctive relief by this Court, Defendant is likely to continue to injure 

consumers, reap unjust enrichment, and harm the public interest. 

THIS COURT’S POWER TO GRANT RELIEF 

59. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this Court 

to grant injunctive and such other relief as the Court may deem appropriate to halt 

and redress violations of any provision of law enforced by the FTC. The Court, in 

the exercise of its equitable jurisdiction, may award ancillary relief, including 

rescission or reformation of contracts, restitution, the refund of monies paid, and 

the disgorgement of ill-gotten monies, to prevent and remedy any violation of any 

provision of law enforced by the FTC. 

PRAYER FOR RELIEF 

Wherefore, Plaintiff FTC, pursuant to Section 13(b) of the FTC Act, 15 

U.S.C. § 53(b), and the Court’s own equitable powers, requests that the Court: 

A. Award Plaintiff such preliminary injunctive and ancillary relief as 

may be necessary to avert the likelihood of consumer injury during the pendency 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 23 of 24 

of this action and to preserve the possibility of effective final relief, including a 

preliminary injunction; 

B. Enter a permanent injunction to prevent future violations of the FTC 

Act by Defendant; 

C. Award such relief as the Court finds necessary to redress injury to 

consumers resulting from Defendant’s violations of the FTC Act, including 

rescission or reformation of contracts, restitution, the refund of monies paid, and 

the disgorgement of ill-gotten monies; and 

D. Award Plaintiff the costs of bringing this action, as well as such other 

and additional relief as the Court may determine to be just and proper. 

[SIGNATURE PAGE FOLLOWS] 

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Case 1:20-mi-99999-UNA Document 1151 Filed 04/20/20 Page 24 of 24 

Respectfully submitted, 

ALDEN F. ABBOTT 

General Counsel 

Dated: __4/20/20_____________ __/s/ Thomas Widor____________________ 

THOMAS J. WIDOR 

MIYA TANDON 

SAMUEL JACOBSON 

BRITTANY FRASSETTO 

Federal Trade Commission 

600 Pennsylvania Avenue, NW 

Mail Stop CC-10232 

Washington, DC 20580 

Telephone: (202) 326-3039 (Widor) 

(202) 326-2351 (Tandon) 

(202) 326-3251 (Jacobson) 

(202) 326-2774 (Frassetto) 

Fax: (202) 326-2752 

Email: twidor@ftc.gov, mtandon@ftc.gov, 

sjacobson@ftc.gov, bfrassetto@ftc.gov 

ROBIN L. ROCK, GA. Bar No. 632529 

Federal Trade Commission 

225 Peachtree St. NE, Suite. 1500 

Atlanta, GA 30303 

Telephone: (404) 656-1368 

Fax: (404) 656-1379 

Email: rrock@ftc.gov 

Attorneys for Plaintiff 

FEDERAL TRADE COMMISSION 

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