FTC Sues Cash App Dave Over Misleading Fees and Marketing

The lawsuit accuses Dave of deceptive practices involving hidden fees and false advertising of cash advances.

Dave Inc., the Los Angeles-based company behind a popular cash-advance app, is being sued by the FTC for allegedly misleading customers about fees and cash advance amounts.
The FTC claims Dave used deceptive marketing, implying cash advances were instant and charged undisclosed fees, including a default 'tip' of 15%.
The lawsuit highlights that only a small number of customers received the advertised $500 cash advances, with most facing a fee to get money immediately.
Dave's stock initially fell after the lawsuit was announced but surged following the election of Donald Trump, suggesting market expectations of reduced regulatory pressure.
The FTC's action against Dave is part of a broader effort to address 'dark patterns' in app design that manipulate consumer behavior.