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The Consumer Financial Protection Bureau (CFPB) released a final rule on Personal Financial Data Rights, implementing Section 1033 of the Consumer Financial Protection Act. The rule requires financial service providers to make a consumer's data available to the consumer and authorized third parties upon request. However, the rule was immediately challenged in court by Forcht Bank, N.A., the Kentucky Bankers Association, and the Bank Policy Institute, who argued that the CFPB overreached its statutory authority by requiring banks to share data with less regulated third parties. The final rule includes a phased implementation schedule based on the size of the institution, with compliance deadlines ranging from 2026 to 2030. [Extracted from the article]

The article reports on U.S. Department of Agriculture (USDA) and Federal Trade Commission (FTC) rules for Food Safety and Inspection Service (FSIS)-regulated products aimed at protecting consumers and upholding the integrity of American manufacturing. Topics discussed include intersection of FTC and USDA jurisdiction, information on the USDA voluntary labeling of FSIS-regulated products with U.S.-origin claims rule, and enforcement of USDA and FTC rules.

The ABA Antitrust Section’s Janet D. Steiger Fellowship Project places law students in attorneys general offices across the country to work on consumer protection issues. The fellowship allowed me to align my career goals with my passion for public service: helping my community, solving problems facing my state, and ensuring a fair marketplace for all consumers. The fellowship placed me with the Office of the Attorney General of Kansas. Fellowships and programs offered by the American Bar Association, like the Steiger Fellowship, can be transformative and provide the guidance, skills, and network needed to build a rewarding legal career. [ABSTRACT FROM AUTHOR]

An interview with U.S. Federal Trade Commission commissioner Melissa Holyoak is presented including information on a background of Holyoak's legal career, consumer protection and personal information privacy.

The article titled "CFPB Comments on Treasury Rulemaking Request" discusses the comment letter provided by the Consumer Financial Protection Bureau (CFPB) to the US Treasury Department regarding the use of artificial intelligence (AI) in the financial services sector. The CFPB emphasizes the need for existing rules to be enforced for all technologies, including AI, and highlights the importance of innovation taking place on a level playing field. The comment letter criticizes previous efforts to encourage innovation, stating that they did not have a positive impact on consumers. The CFPB's focus is on reining in the use of AI and other technologies rather than facilitating their use. [Extracted from the article]

The article discusses three recent enforcement actions by the Federal Trade Commission (FTC) in the first quarter of 2024. These actions focused on the mishandling of sensitive personal data, specifically browsing and location data, by mass collectors. The FTC found that the companies involved had safeguards and data protection plans in place, but these measures were either ineffective or not followed up on. The FTC emphasized the importance of backing up promises and contract clauses with action. The three companies involved in the enforcement actions were X-Mode Social, Inc. and its successor Outlogic, LLC, InMarket Media, LLC, and Avast Limited. [Extracted from the article]

President Joe Biden recently spoke about his administration's efforts to combat "junk fees," which are hidden charges that companies add to bills. He called on Congress to pass the Junk Fee Prevention Act, which would outlaw certain fee practices and empower the Federal Trade Commission (FTC) and other agencies to create rules to enforce the law. The FTC has proposed a regulation that would prohibit unfair or deceptive practices related to fees for goods or services. Additionally, California has passed legislation banning "drip pricing," where companies advertise a price that is lower than the actual cost. These efforts aim to protect consumers from hidden fees and promote fair business practices. [Extracted from the article]

The article focuses on the challenges related to ethical marketing, cultural integrity, and consumer protection in Hawaii's tourism industry, particularly regarding products labeled as "Made in Hawaii." It discusses the legal framework surrounding "Made in Hawaii," "Hawaii Made," and the need for a similar designation for "Native Hawaiian Made" products to protect indigenous rights that is Native Hawaiian culture and businesses from misappropriation and deception.

Consumer Financial Protection Bureau v. Community Financial Services Associations of America, Ltd. Docket No. 22-448 Reversed and Remanded: The Fifth Circuit Argued: October 3, 2023 Decided: May 16, 2024 Analysis: [...]

As DOT knows from its now-rescinded regulation that required airlines to transport emotional support animals in the passenger cabin, consumers are all too able to take advantage of loosely defined DOT rules, and one does not have to stretch the imagination to envision the potential for fraud and abuse around the ticket refund requirement. DOT's Current Regulations Provide it with the Tools Necessary to Protect Consumer Welfare Over the last 15 years, DOT has issued extensive regulations to improve the air travel environment for consumers. If DOT keeps this aspect of the Ticket Refund NPRM (which it should not), DOT should, at a minimum, provide an objectively manageable definition of "serious communicable disease." However, the Department's proposal to require airlines to issue non-expiring travel credits/vouchers to passengers who purchase a nonrefundable fare threatens to unravel the public benefits resulting from lower fares. [Extracted from the article]

Self-cures, an assessment factor in Consumer Financial Protection Bureau examinations, include “identification and prompt correction of serious violations,” as well as “full redress for injured parties.” Holland & Knight and NERA collaborated on a project involving a financial institution seeking to implement a self-cure resulting from an inadvertent coding issue affecting the frequency of the financial institution’s review of consumers’ interest rates for certain credit products. Full redress involves assessing what the consumer’s economic situation would have been but for the wrongful act and comparing it to the consumer’s actual economic situation with the wrongful act. Holland & Knight and NERA worked with the financial institution’s legal, business, and data and analytics teams to assess the institution’s (1) redress approach and payments to affected customers and (2) updates to its procedures and associated code requiring redress. [ABSTRACT FROM AUTHOR]

Illinois has adopted the Uniform Money Transmission Modernization Act, replacing the existing Transmitters of Money Act in the state. The new legislation imposes stricter licensing and reporting requirements for money transmitters and establishes a Consumer Protection Fund to provide restitution to consumers affected by regulatory violations. These regulations are set to take effect on January 1, 2026, aiming to enhance consumer protection in the money transmission industry. [Extracted from the article]

A group of fifteen student loan securitization trusts has petitioned the Supreme Court to hear their appeal regarding the Consumer Financial Protection Bureau's (CFPB) jurisdiction over entities used as securitization vehicles for consumer financial products, specifically student loans. The Third Circuit had previously affirmed the CFPB's jurisdiction, stating that the trusts are "covered persons" under the Consumer Financial Protection Act (CFPA) due to their involvement in offering and providing consumer financial products. The trusts argue that they are passive vehicles and not engaged in student loan servicing, and that the loan servicing is performed by an independent entity. They also claim that the Bureau's enforcement action should be dismissed because it was initiated prior to the Supreme Court's decision on the constitutionality of the CFPB director's removal. [Extracted from the article]

The Consumer Financial Protection Bureau (CFPB) has announced a consent order with Fay Servicing, a mortgage servicer operating in Florida, Illinois, and Texas. This order comes after a previous consent order in 2017 for violations of the Real Estate Settlement Procedures Act (RESPA) and its implementing Regulation X. The new order finds that Fay Servicing continued to violate RESPA and Regulation X, as well as other laws, and requires $3 million in consumer redress, a $2 million civil money penalty, and investment in updating its servicing technology and compliance management systems. The order also restricts compensation to the founder and CEO if compliance is not ensured. [Extracted from the article]

The Consumer Financial Protection Bureau (CFPB) has issued an advisory opinion regarding consumer information requests to large banks and credit unions. The opinion clarifies that certain conditions, such as charging fees for requested information or imposing long wait times, may be considered unreasonable impediments to consumers' requests for information. The CFPB suggests that these conditions may violate the Consumer Financial Protection Act and impede consumers' ability to exercise their right to request information. The CFPB does not plan to seek monetary relief for potential violations before February 1, 2024. [Extracted from the article]

The Consumer Financial Protection Bureau (CFPB) has released a Proposed Rule to implement Section 1033 of the Consumer Financial Protection Act. This rule would grant consumers "personal financial data rights," allowing them to easily transfer their data from one financial institution to another. The rule also outlines how third parties can access consumer data and restricts the use of consumer data for purposes other than providing products or services. The CFPB aims to increase competition and quality among service providers by improving consumer data portability. [Extracted from the article]

The article discusses the increasing use of artificial intelligence (AI) in the insurance industry, highlighting its potential to improve efficiency and decision-making. The National Association of Insurance Commissioners (NAIC) has adopted a Model Bulletin to regulate the use of AI systems by insurers, emphasizing the need for accountability, risk management, and consumer protection. Various states have also introduced legislation to address concerns about potential discrimination and privacy issues related to AI in insurance. Insurers are advised to approach AI implementation with caution and compliance to navigate the evolving regulatory landscape. [Extracted from the article]

The United States District Court for the Southern District of New York has ruled that cellphone users are not categorically excluded from the definition of "residential subscriber" under the Telephone Consumer Protection Act (TCPA). In the case of Cacho v. McCarthy & Kelly LLP, the plaintiff received unsolicited calls on his cellphone from the defendant, despite being registered on the National Do Not Call Registry. The defendant argued that the TCPA only applies to landline subscribers, but the court rejected this claim, stating that it is reasonable to include individuals who use a cellphone for household purposes in the definition of "residential subscriber." However, the court also found that the plaintiff's complaint lacked sufficient evidence to show that the defendant knew or should have known about the TCPA violations. This ruling demonstrates that courts interpret consumer protection laws to provide broad coverage. [Extracted from the article]

The Consumer Financial Protection Bureau (CFPB) has issued a final rule that establishes the qualifications for industry standard-setters in relation to personal financial data rights. This rule is part of the CFPB's ongoing efforts to implement Section 1033 of the Consumer Financial Protection Act, which aims to provide consumers with personal financial data rights, including the ability to easily transfer data between financial institutions. The final rule outlines the criteria that standard-setting bodies must meet to be recognized by the CFPB, including openness to participation, balanced decision-making, a transparent process for resolving conflicts, and the use of consensus. CFPB recognition will last for five years. [Extracted from the article]

The Bureau of Consumer Financial Protection (CFPB) recently faced a challenge to its funding mechanism based on the appropriations clause of the Constitution. The Fifth Circuit had previously invalidated the mechanism, but the U.S. Supreme Court reversed this decision. The majority opinion, authored by Justice Thomas, concluded that appropriations only need to identify a source of public funds and authorize their expenditure for designated purposes to satisfy the Appropriations Clause. This ruling has implications for the CFPB's funding and its ability to carry out its consumer protection mandate. [Extracted from the article]

The European Union (EU) legislators adopted the Digital Markets Act (DMA) with overwhelming majorities While many jurisdictions around the globe have for years talked about the problems in the functioning of digital markets and the need to do something1 -- the EU has now acted. EU antitrust law will continue to apply to digital markets outside the scope of the DMA provisions This is important as the DMA covers only specified types of conduct by a specific class of companies ("gatekeepers") in relation to a defined set of services ("core platform services"). The DMA also foresees the adoption of implementing acts48 and guidelines49 that will set out the EC's approach both in terms of procedure (including on enforcement cooperation between the EC and the EU Member State agencies, which cover more than simply antitrust agencies50) and substance for the implementation and enforcement of the DMA. (L 409) 1. 89 These include a delegated act by which the EC can extend obligations to further core platform services/users and further specify them, etc. (Digital Markets Act, supra note 5, Articles 12 and 49); market investigations and legislative proposals to add new core platform services and obligations (Digital Markets Act, supra note 5, Article 19); and general review (Digital Markets Act, supra note 5, Article 53). [Extracted from the article]

The Consumer Financial Protection Bureau (CFPB) is focusing on eliminating "junk fees" and has issued new guidance on obtaining consumer consent for overdraft fees under the Electronic Fund Transfer Act. Consumers must opt in, not opt out, to overdraft fees for ATM or one-time debit transactions to protect them from unwanted charges. The CFPB's guidance includes examples of acceptable forms of affirmative consent, such as signed forms, call recordings, or electronic signatures, to ensure compliance by financial institutions. [Extracted from the article]

The article discusses the criminal suit against a company for false advertising by the United States. Federal Trade Commission Under state law (California Business and Professions Code 17500), false and deceptive advertising is strictly prohibited. A company that violates the state's false advertising regulations could be held both civilly and criminally liable.

CASE AT A GLANCE The Telephone Consumer Protection Act (TCPA) limits the use of automatic telephone dialing systems (ATDS). The law defines ATDS in 47 U.S.C. [section] 227(a)(1): (1) The term 'automatic telephone dialing system' means equipment that has the 'capacity--(A) to store or produce telephone numbers to be called, using a random or sequential number generator; and (B) to dial such numbers.' The question in this case is one of statutory construction: whether the law applies to technologies that can produce telephone numbers to be called or only to technologies that store and produce randomly generated telephone numbers., Facebook, Inc. v. Duguid Docket No. 19-511 Argument Date: December 9, 2020 From: The Ninth Circuit Issue Does the definition of automatic telephone dialing system (ATDS) in the Telephone Consumer [...]

24 The European Commission and Consumer Protection Cooperation authorities, under the lead of the Netherlands Authority for Consumers and Markets and the Belgian Directorate General for Economic Inspection, are asking Google to make it clear when it acts as a direct seller or intermediary and to improve its compliance to EU law in general for its various services. In some countries like France, collective redressproceedings are based on opting-in, while other countrieslike Portugal apply an "opt-out" system and others, such asBelgium, use a combination of both systems.[33] In 2020, the EU adopted the Representative ActionsDirective,34 which requires every Member State to establisha system of representative actions on behalf of consumers forviolations of a variety of EU consumer protection laws. THE EUROPEAN UNION HAS GAINED global recognition for the enforcement of antitrustlaws against digital companies like Google,Amazon, Apple, and Facebook, as well asfor its ambitious privacy laws like the GeneralData Protection Regulation (GDPR). [Extracted from the article]

The article discusses the case of Securities and Exchange Commission v. Jarkesy, which involves a petition for review by the SEC of a Fifth Circuit decision that deemed the SEC's administrative prosecution of securities fraud claims against hedge fund manager George Jarkesy unconstitutional. The Fifth Circuit majority found that the SEC did not have the authority to adjudicate administrative enforcement proceedings that impose monetary penalties, that allowing the SEC to choose between prosecution in court or before an administrative law judge (ALJ) was an impermissible delegation of legislative authority, and that the SEC cannot provide ALJs with multiple layers of removal protection without limiting the president's executive power. The article also explores the issue of whether the government can obtain monetary penalties in administrative SEC proceedings without a jury trial, which is the subject of much debate. The Supreme Court's ruling in this case could have significant implications for administrative law. [Extracted from the article]

Congressman Andy Barr has introduced proposed legislation in the U.S. House called the "Rectifying Undefined Descriptions of Abusive Acts and Practices Act." The legislation aims to amend and clarify the standards surrounding the authority of the Consumer Financial Protection Bureau (CFPB) to police unfair, deceptive, and abusive acts and practices (UDAAP) under the Consumer Financial Protection Act. The proposed legislation includes provisions such as requiring the Bureau to issue rules on civil penalties for UDAAP violations, defining "abusive act or practice," prohibiting the inclusion of discriminatory practices under UDAAP, and limiting the Bureau's ability to seek civil penalties for conduct prior to the target's most recent consumer compliance rating. [Extracted from the article]

President Biden issued an executive order on the "Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence," recognizing the potential benefits and risks of AI. The order aims to establish guidelines for AI and its applications, particularly in consumer financial services. It encourages the Consumer Financial Protection Bureau (CFPB) to address bias in underwriting models and collateral-valuation processes, as well as issues related to tenant screening systems and the advertising of housing and credit through digital platforms. The order emphasizes the protection of consumers from fraud, privacy infringements, and discrimination. [Extracted from the article]