Legal and Regulatory Developments
Feds Target AI Misuse in Financial Services
The Consumer Financial Protection Bureau issued a statement in collaboration with federal partners, including the Federal Trade Commission (FTC) and the Department of Justice (DOJ), emphasizing that advanced technology and automated systems are not excuses for lawbreaking behavior. The statement aims to promote responsible use of technology and ensure that companies comply with federal consumer financial laws and regulations.
CFPB Rule and Enforcement Guidance on Small Business Lending Data Collection
The Consumer Financial Protection Bureau finalized a new Rule aimed at improving the transparency of and access to credit for small businesses on March 30, 2023. The Rule requires financial institutions to report data on their lending practices for small businesses, including information on the race, ethnicity, and gender of business owners.
The FTC's Proposed "Rule Concerning Recurring Subscriptions and Negative Options": Improving Regulations or Interfering with Commercial Contracts?
Payment service providers should take note of an expansive new rule proposed by the Federal Trade Commission intended to protect consumer shoppers of goods and services sold on a subscription basis. For merchants engaged in sales of subscription-based products or services, the FTC's objective is to set forth "clear, enforceable performance-based requirements for all negative option features in all media," and the proposed rule would greatly expand the scope of FTC regulations applicable to their offers.
U.S. Supreme Court Justices Thomas and Gorsuch Skeptical of ALJ Proceedings in Axon Enterprise v. Federal Trade Commission Decision
The U.S. Supreme Court's landmark decision unanimously reversing the Ninth Circuit in Axon Enterprise v. Federal Trade Commission is likely to represent a monumental shift in pre-enforcement challenges to administrative enforcement proceedings brought by federal agencies, including the FTC.
Click to Cancel: FTC Proposes New Rule Regulating Subscription Services and Negative Option Programs with Broad Implications
The Federal Trade Commission announced that its proposed rule replacing its Prenotification Negative Option Rule would result in new, expansive requirements for all forms of negative option offers, including automatic renewals, continuity plans, and free-to-pay conversations, made in all media, including Internet, telephone, in-person, and printed material.
"How a Divided Government is Impacting Policymaking: Opportunities and Challenges for Debt Relief Companies" at American Fair Credit Council
Jonathan Pompan, Chair of the Consumer Financial Services Practice Group, presented an update on legal and regulatory challenges and opportunities at the American Fair Credit Council's (AFCC) 2023 Spring Conference on May 10 in Orlando, FL.
"Consumer Financial Services Legal and Regulatory Update" at the Financial Counseling Association of America's May 2023 Conference
Jonathan Pompan, Chair of Venable's Consumer Financial Services Practice Group, presented an update on legal and regulatory challenges and opportunities at the Financial Counseling Association of America (FCAA) May 2023 Conference, on May 11 in Salt Lake City, UT.