FLEETCOR Reinforces Commitment to Customer Transparency
Strongly Disagrees with FTC Lawsuit
The Company has attempted to engage constructively with the FTC to resolve this matter. However, these discussions reached an impasse primarily related to what
We believe the FTC’s complaint is based upon fundamental misconceptions of the Company, its customers and its products, specifically in the following key areas:
- FLEETCOR’s customer disclosures are clear and communicated repeatedly. The Company’s card programs include a thorough and extensive on-boarding process that describes the program’s features in both online and written materials. These materials provide the information necessary to understand the benefits and fees associated with a chosen program. Further, we reiterate fee-specific terms on every customer invoice, itemize fees on management reports, and annually distribute complete Terms & Conditions to every customer.
- FLEETCOR’s customers are sophisticated businesses who read their contracts, invoices and reports. The Company’s customers are businesses that operate commercial fleets and understand their contracts. FLEETCOR’s customers contract with the Company primarily to take advantage of our control and reporting tools, which go beyond the capabilities of general-purpose credit cards and enable customers to review all fuel card expenses in real time. Given fuel is a significant operating expense for commercial fleets, our customers read and closely monitor the invoices and fleet management reports we provide. All customers affirm their acceptance and understanding of the card program and its Terms & Conditions during the application process. Notably, our standard Terms & Conditions do not require a contract term, allowing customers to choose to opt out of the service at any time.
- FLEETCOR’s fees are in line with industry standards and understood by our customers. The Company actively engages with its customers about its fees, and believes its strong share of the U.S. fuel card market underscores that customers choose to stay with
FLEETCORyear after year.
- FLEETCOR’s savings offers are clearly articulated, defined and disclosed in its advertising. Like other industry participants, the Company offers savings “up to” a maximum level, subject to specified caveats (e.g., purchase volume, account in good standing, preferred site selection, etc.). Pricing rules associated with savings offers are programmed into our processing systems, ensuring appropriate and consistent administration thereof. A large percentage of customers receive “hard savings” from retail fuel prices, while also benefiting from reductions in unauthorized purchases and administrative costs enabled by fuel card controls and reporting.
FLEETCORhas further enhanced our customer-facing materials and disclosures. The Company has taken steps, and will continue to take steps to modify its advertising, enhance disclosures regarding fees and improve its service to customers. Several of these enhancements have already been launched to the marketplace. We strongly disagree with the FTC’s assertion that our existing materials failed to meet market standards, and therefore do not believe redress is warranted.
- FLEETCOR’s high level of customer satisfaction is demonstrated by low complaint levels relative to the size of its customer base and volume of interactions. Based on publicly-available data from the
Better Business Bureau, we register approximately one complaint per 28,000 invoices (i.e., 0.0036%) within our U.S. fuel card business. This number is favorable compared to other card issuers. We feel the FTC’s broad categorization of our practices and our customers’ awareness of disclosures, which appears based on a relatively small number of customer complaints, is completely inappropriate.
The FTC investigation and allegations are directly related to FLEETCOR’s U.S. direct fuel card business within its North American Fuel Card business. This business generates approximately
This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about
Jim Eglseder, 770-417-4697