The Federal Trade Commission has reached a settlement with PayPal, Inc regarding violations of GrammLeachBliley Act's (GLBA) Safeguards and Privacy Rules.  Venmo is PayPal's peer-to-peer payment service which the FTC charged had been misleading consumers regarding how well they could control privacy in their transactions.

Venmo consumers had claimed financial hardships in being unable to pay rent and other expenses when it was discovered funds were frozen or removed based on results of Venmo's review of the underlying transactions.  Venmo was delaying withdrawal of funds or reversing transactions after initially notifying them that funds were available.