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Paddle reaches agreement with the Federal Trade Commission (FTC)

London, 16 June 2025 — The Federal Trade Commission (FTC) today announced it has reached an agreement with Paddle to memorialize strong risk processes that protect US consumers.

Over 5 years ago, Paddle onboarded two companies that the FTC alleges then participated in deceptive telemarketing upsell practices outside of Paddle. We find their alleged behaviour and its impact on consumers abhorrent. The FTC acknowledged that Paddle did not process any payments for deceptive telemarketing practices. We do not wish to profit from our association with these two companies, and so the settlement includes an amount of $5m to reflect that.

“Paddle serves over 6,000 digital product companies, whose innovative technology collectively brings incredible value to consumers all around the world” said Jimmy Fitzgerald, CEO at Paddle. “And whilst we believe that almost all digital product companies are ‘forces for good’, it is sadly a reality that there are some bad faith actors out there.”

“We believe the agreement with the FTC will memorialize our strong risk governance, setting the bar for both ourselves and for the wider industry" said Rob Fletcher, President at Paddle. “We are grateful for the positive engagement we have had with the FTC, and we are committed to not only meeting but exceeding this high bar, for the benefit of all.”

As the leading global reseller of digital products, Paddle’s purpose is to help companies distribute their innovative digital products to consumers all around the world - in an easy, safe and compliant way. This agreement acknowledges many of Paddle’s existing risk processes and governance, and establishes an updated reporting framework that will provide additional visibility to Paddle’s partners. For several years, Paddle has banned certain categories of tech-support companies from joining Paddle - this agreement confirms we will continue that policy.

We will continue investing to build an enduring business for the millions of consumers and thousands of digital product companies we serve.

We've outlined further information on a Q&A here.

About Paddle

Paddle helps over 6,000 SaaS, AI, and app companies operate and grow automatically, by taking care of global payments, sales tax compliance, and subscription management. Backed by investors including KKR, FTV Capital, Kindred, Notion, and 83North, Paddle enables businesses from startups to enterprises to sell digital products safely and easily around the world.

Press Contact

Arena Advisory Group for Paddle

Amanda Duckworth; duckworth@arenaadvisorygroup.com

Jason Golz; golz@areanadvisorygroup.com