FTC refund
Money the Federal Trade Commission sends back to people harmed by a company, usually from a case the FTC won or settled. You never have to pay to receive it.
Also called: FTC refund check, Federal Trade Commission refund, FTC refunds
Money the Federal Trade Commission sends back to people harmed by a company, usually from a case the FTC won or settled. You never have to pay to receive it.
What it means
An FTC refund is money the Federal Trade Commission sends to people who lost money because of a business practice the agency challenged. The money generally comes from the company the FTC sued or settled with. It is not a class action settlement, though it can look like one. You may receive a check or an electronic payment such as PayPal, often through a private refund administrator.
Whether you must file a claim depends on the case. Usually you do not. If the FTC has a reliable customer list, it pays people directly. A claims process is used only when the FTC lacks the records it needs, and then affected people must apply. Money left over after refunds can go to the U.S. Treasury.
The FTC says it never requires an upfront fee for a refund. It also never asks for your Social Security number or bank account number. Administrators it hires include Epiq and Rust Consulting, so a check from a company you do not recognize can be real. Verify any refund at ftc.gov/refunds.
What it means for you
If you used a product or service that the FTC took action over, you may have money waiting. Look up the case at ftc.gov/refunds and read the steps for that program, since some pay automatically and others require a claim. If an expired check shows up, ask the administrator about a reissue. A real FTC refund never asks you to pay a fee or share your Social Security number or bank login. If someone says you must pay to release a refund, it is a scam; report it at ReportFraud.ftc.gov. Our Rust Consulting guide explains why an unfamiliar administrator's check can be real.
Example
Say a hypothetical online coaching company sold a program using false income claims, and the FTC settled with it. The settlement fund is used to refund buyers. Because the company gave the FTC its customer list, an administrator mails checks without asking anyone to file a claim. You get a check from a company you do not recognize, so you look up the case at ftc.gov/refunds, confirm it is real, and cash it. At no point does anyone ask you to pay a fee.
FAQ
Usually not. If the FTC has a reliable customer list, it pays people directly. It uses a claims process only when it lacks the information needed to send refunds, and then affected people must apply.
It can be. The FTC contracts with private companies, including Epiq and Rust Consulting, to send refunds. Verify the case at ftc.gov/refunds before you cash it, and never pay anyone to receive a refund.
Related terms
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.