California Agencies

1. California Department of Financial Protection and Innovation (DFPI)

• What Matco Did:
  • Delayed recording of credit card transactions, harming consumers and businesses.
  • Potentially violated the Franchise Investment Law by failing to provide accurate Franchise Disclosure Documents (FDDs).
• What DFPI Investigates:
  • Violations of California financial regulations and unfair practices, such as misrepresentation in franchise agreements and harmful transaction delays.

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2. California Attorney General’s Office (Consumer Law Section)

• What Matco Did:
  • Allegedly engaged in deceptive practices, including overcharging franchisees for initial inventory.
  • Blocked franchise transfers and retaliated against franchisees forming associations.
• What the Attorney General Investigates:
  • Violations of the Unfair Competition Law (UCL) and the False Advertising Law.
  • Fraudulent or deceptive business practices harming franchisees and consumers.

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3. California Department of Justice (DOJ) – Fraud and Consumer Protection Division

• What Matco Did:
  • Allegedly retaliated against franchise owners for organizing associations.
  • Imposed restrictive practices preventing franchise sales.
• What DOJ Investigates:
  • Statewide fraud and unfair business practices, including breaches of the California Franchise Investment Law and the Duty of Good Faith.

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4. California Department of Consumer Affairs (DCA)

• What Matco Did:
  • Failed to process credit card transactions promptly, leading to delays in refunds and incorrect billing for customers.
• What DCA Investigates:
  • Consumer complaints about unfair billing practices, extended refund wait times, or discrepancies in financial transactions.

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5. California Department of Business Oversight (DBO)

• What Matco Did:
  • Delayed fund transfers in credit card transactions, potentially impacting financial disclosures and franchisee earnings.
• What DBO Investigates:
  • Integrity of fund transfers, financial compliance, and transparency in business operations.

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6. California Franchise Tax Board (FTB)

• What Matco Did:
  • Credit card delays and unprocessed transactions may affect franchisee income reporting and tax compliance.
• What FTB Investigates:
  • Tax reporting discrepancies and potential violations of California tax laws due to delayed transactions.

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7. Local District Attorneys and City Attorneys

• What Matco Did:
  • Allegedly engaged in deceptive practices that harmed franchisees and consumers locally.
• What District/City Attorneys Investigate:
  • Violations of the Unfair Competition Law (UCL) at the local level, often in collaboration with the DFPI and Attorney General.

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8. California State Controller’s Office (SCO) – Unclaimed Property Division

• What Matco Did:
  • Delayed credit card refunds or failed to return unclaimed funds within required timeframes.
• What SCO Investigates:
  • Compliance with unclaimed property laws, ensuring businesses remit unclaimed funds to the state.

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Federal Agencies

1. Federal Trade Commission (FTC)

• What Matco Did:
  • Potentially violated the FTC Franchise Rule by misrepresenting franchise opportunities in the FDD.
  • Used deceptive practices, such as hidden fees and unfair restrictions on franchise transfers.
• What FTC Investigates:
  • Misleading franchise disclosures and unfair competition practices harming franchisees and consumers.

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2. Consumer Financial Protection Bureau (CFPB)

• What Matco Did:
  • Delayed financial transactions, leading to consumer harm, such as delayed refunds and overdraft fees.
• What CFPB Investigates:
  • Violations of the Electronic Fund Transfer Act (EFTA) or Truth in Lending Act (TILA) related to credit card processing delays.

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3. Department of Justice (DOJ)

• What Matco Did:
  • Allegedly engaged in fraudulent practices, including overcharging franchisees and blocking franchise transfers.
• What DOJ Investigates:
  • Large-scale fraud, antitrust violations, and other federal offenses affecting interstate commerce.

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4. Internal Revenue Service (IRS)

• What Matco Did:
  • Delayed transaction processing may lead to inaccurate income reporting by franchisees.
• What IRS Investigates:
  • Tax compliance and any discrepancies caused by Matco’s operational practices.

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5. Federal Reserve System

• What Matco Did:
  • Allegedly caused disruptions in fund transfers related to credit card transactions.
• What Federal Reserve Investigates:
  • Integrity and compliance of payment processing systems.

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6. Securities and Exchange Commission (SEC)

• What Matco Did:
  • Allegedly failed to disclose material risks related to these operational issues in parent company Vontier Corporation's filings.
• What SEC Investigates:
  • Securities fraud and material misrepresentation in financial disclosures affecting shareholders.

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7. United States Postal Inspection Service (USPIS)

• What Matco Did:
  • Used mail and electronic systems to facilitate delayed or fraudulent billing practices.
• What USPIS Investigates:
  • Fraud involving the mail or electronic financial transactions.

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8. Office of the Comptroller of the Currency (OCC)

• What Matco Did:
  • Potentially compromised fund transfers processed through national banks.
• What OCC Investigates:
  • Bank compliance with federal fund transfer standards.

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9. Small Business Administration (SBA)

• What Matco Did:
  • Allegedly harmed franchisees through unfair practices, impacting their small business viability.
• What SBA Investigates:
  • Violations of franchising principles and practices that harm small business owners.

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10. Federal Bureau of Investigation (FBI)

• What Matco Did:
  • Allegedly engaged in schemes to defraud franchisees and consumers, potentially involving interstate commerce.
• What FBI Investigates:
  • Large-scale financial fraud and violations of federal statutes.

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11. United States Department of Labor (DOL)

• What Matco Did:
  • Misclassified franchisees as independent contractors while treating them as employees.
• What DOL Investigates:
  • Violations of federal labor laws, including misclassification and unfair treatment.

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