To print this article, all you need is to be registered or login on Mondaq.com.
Welcome to Wiley’s update on recent developments and
what’s next in consumer protection at the Consumer Financial
Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this
newsletter, we analyze recent regulatory announcements, recap key
enforcement actions, and preview upcoming deadlines and events. We
also include links to our articles, blogs, and webinars with more
analysis in these areas. We understand that keeping on top of the
rapidly evolving regulatory landscape is more important than ever
for businesses seeking to offer new and groundbreaking
technologies. Please reach out if there are other topics you’d
like to see us cover or for any additional information.
To subscribe to this newsletter, click here.
Regulatory Announcements
CFPB To Propose Rules That Could Expand FCRA Coverage to
Certain Data Brokers and “Credit Header Data.”
On August 15CFPB Director Rohit Chopra announced during a White House Roundtable
discussion that the agency is planning to propose new rules under the Fair Credit
Reporting Act (FCRA). The proposals under consideration would: (1)
define data brokers that sell certain kinds of consumer data-such
as a consumer’s payment history, income, or criminal records-as
a consumer reporting agency covered by the FCRA; and (2)
potentially expand the definition of a consumer report under the
FCRA to cover “credit header data.” Credit header data
includes information such as consumer name, address, or Social
Security number. In his White House remarks, Director Chopra noted
that the CFPB next month plans to release an outline of proposals
and alternatives under review for Small Business Review Panel
feedback, and then seek public comment on proposed rules in
2024.
Recent Enforcement Actions
FTC and DOJ Settle with Credit Bureau for Allegedly
Failing to Inform Consumers of Email Marketing Opt-Out
Rights. On August 14the Department of
Justice (DOJ), on behalf of the FTC, filed a complaint and stipulated order against Experian Consumer
Services (ECS), also known as ConsumerInfo.com, Inc., in the U.S.
District Court for the Central District of California. The FTC and
DOJ alleged that the company sent marketing emails to consumers who
had signed up for credit services without providing consumers a
clear and conspicuous opt-out or unsubscribe option in violation of
the CAN-SPAM Act. The company agreed to injunctive relief and a
$650,000 monetary penalty.
CFPB Settles with Mortgage Lender and Real Estate
Brokerage for Alleged RESPA Violations. On August
17the CFPB filed consent orders and stipulations against
Freedom Mortgage Corporation, a nonbank
mortgage loan originator, and Realty Connect, a real estate brokerage firm,
for alleged violations of the Real Estate Settlement Procedures Act
(RESPA) and its implementing regulation. The CFPB alleges that
Freedom Mortgage entered into marketing services agreements and
provided unlawful incentives to Realty Connect for referring its
clients that needed mortgage loans to Freedom. Freedom Mortgage has
agreed to pay a $1.75 million civil penalty in
addition to injunctive relief. Realty Connect will pay a $200,000
civil penalty and has also agreed to injunctive relief.
Upcoming Comment Deadlines and Events
FTC to Host Workshop on Proposed Changes to the Funeral
Rule. On September 7the FTC will host a
public workshop on the changes to its Funeral Rule proposed in its
Advance Notice of Proposed Rulemaking. The
workshop will cover a number of topics including, among other
things, online or electronic disclosures of price information, the
general price list required by the Funeral Rule, and whether
funeral providers should be required to give out general price
lists in languages other than English. The public can submit
comments on the topics to be covered in the workshop until
October 10. Instructions for filing comments will
be published in the Federal Register.
CFPB, HHS, and Treasury Seek Comment on Medical Payment
Products. Comments are due September 11 on the
RFI issued by the CFPB, HHS, and U.S. Department of Treasury
seeking information about the prevalence of medical credit cards
and installment loans that are offered to patients as a way to pay
for medical care. The agencies specifically request information
about the specialty medical payment market and associated data on
interest fees and costs for medical credit products, patient
experiences with medical credit cards and installment loans, issues
with patient billing and collections, and any incentives that
health care providers have to offer medical credit cards and
installment loans.
FTC Seeks Comment on Amendments to Premerger
Notification Rules and Premerger Notification and Report Form and
Instructions. Comments are due September
27 (extended from August 28) on the FTC’s NPRM
proposing to amend the premerger notification rules that implement
the Hart-Scott-Rodino Antitrust Improvements Act, and the Premerger
Notification and Report Form and Instructions. If adopted, the
FTC’s NPRM proposals would substantially expand the amount of
information that covered entities must submit to the agency about
potential transactions.
FTC Solicits Comment on NPRM Proposing to Classify
Certain Consumer Review and Testimonial Practices as Unfair or
Deceptive. Comments are due September 29 on an NPRM that, if adopted, would classify certain
consumer review and testimonial practices as unfair or deceptive
practices under Section 5 of the FTC Act. Advertising practices
that the NPRM proposes to classify as “unfair” or
“deceptive” include (1) selling or obtaining
“fake” consumer reviews; (2) repurposing consumer reviews
or “review hijacking;” (3) purchasing positive or
negative reviews; (4) permitting insider reviews and testimonials
without adequate disclosure; (5) representing that
company-controlled review websites or entities are independent; (6)
review suppression; and (7) misuse of fake social media influence
indicators.
FTC Issues Supplemental Proposed Amendments to Testing
Methods Under the Amplifier Rule. Comments are due October 20 on the
FTC’s Supplemental Notice of Proposed Rulemaking
(SNPRM) proposing amendments to the agency’s Amplifier Rule.
The Amplifier Rule, formally known as the Rule Relating to Power
Output Claims for Amplifiers Utilized in Home Entertainment
Products, regulates power output claims for home entertainment
amplifiers. The SNPRM proposes to amend the Amplifier Rule to,
among other things, set standard test conditions for measuring
amplifier power output; clarify which power output disclosures
comply with the Amplifier Rule and which do not; and to revise
language in the rule related to these proposed modifications.
More Analysis from Wiley
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Consumer Protection from United States