The FTC’s final rule released last week amending its Standards for Safeguarding Customer Information (Safeguards Rule) under the Gramm-Leach-Bliley Act (GLBA) will require significant changes in data security policies and procedures to be made by non-bank financial institutions covered by the Safeguards Rule. Such institutions include finance companies, mortgage companies and brokers, motor vehicle dealers,
FTC
CFPB/FTC/North Carolina DOJ file amicus brief with Fourth Circuit in support of reversal of district court decision giving FCRA immunity to consumer reporting agency under the Communications Decency Act
By Christopher J. Willis on
The CFPB, FTC, and the North Carolina Department of Justice filed an amicus brief with the U.S. Court of Appeals for the Fourth Circuit urging it to reverse a district court decision that found Section 230 of the Communications Decency Act made a consumer reporting agency immune from FCRA claims.
In Henderson v. The Source…
California enacts new requirements for automatic subscription renewals; Ballard Spahr to hold Oct. 19 webinar on subscription services
By Kim Phan on
Posted in FTC, Regulatory and Enforcement
On October 4, California Governor Gavin Newsom signed into law amendments to California’s existing law on automatic subscription renewals. The law applies to all businesses that make automatic renewal or continuous services offers to California consumers. The amendments are effective July 1, 2022.
The amendments include new notice requirements that apply:
- when a consumer
…
FTC looks to Section 5 penalty offense authority in sending notices to for-profit schools that outline practices found to be unfair or deceptive
By John L. Culhane, Jr. & Heather S. Klein on
Posted in FTC, Regulatory and Enforcement
The FTC announced yesterday that it has sent a “Notice of Penalty Offenses” to 70 for-profit higher education institutions that outlines a number of practices that the FTC has previously found to be unfair or deceptive.
The seven practices outlined in the Notice generally relate to claims made by schools about their graduates’…
FTC Chair Khan outlines priorities in memo to FTC Commissioners and FTC staff
FTC Chair Lina Khan sent a memo this week to the other FTC Commissioners and FTC staff outlining her “vision and priorities” for the agency.
The key statements in her memo relevant for consumer financial services are:
- Use of authorities. In light of the U.S. Supreme Court’s AMG decision, it is particularly critical for the
…
FTC successfully uses Section 19 of FTC Act to obtain restitution as alternative to Section 13(b)
By Kim Phan on
Posted in FTC, Regulatory and Enforcement
An Illinois federal district court has ruled that Section 19 of the FTC Act provided an alternate route for the FTC to obtain restitution after its prior restitution award under Section 13(b) of the FTC Act was vacated by the Fifth Circuit because it concluded that monetary relief is not available under Section 13(b).
In…
President Biden nominates Alvaro Bedoya to serve as FTC Commissioner
On Monday, the White House announced the nomination of Alvaro Bedoya to serve as FTC Commissioner. Mr. Bedoya is slated to fill the seat on the Commission currently held by Rohit Chopra, which Mr. Chopra will vacate upon his confirmation as CFPB Director. Mr. Chopra is expected to be confirmed as CFPB Director before the…
FTC files administrative complaint against marketer of fuel cards as strategy for addressing SCOTUS AMG Capital Management decision
By Christopher J. Willis on
Last week, the FTC filed an administrative complaint against Fleetcor Technologies, a marketer of fuel cards, and its CEO in which the FTC alleges that the respondents violated the FTC Act’s prohibition on unfair or deceptive acts or practices. The complaint’s allegations mirror those in the lawsuit filed by the FTC against the respondents in…
Changes in FTC rulemaking procedures create easier path for new FTC UDAP rules
By Kim Phan on
At her first FTC meeting earlier this month, newly-confirmed FTC Chair Lina Khan moved, and the Commission approved (by a 3-2 vote), changes to the FTC’s rulemaking process. The changes could assist the efforts of Democratic FTC Commissioners to further White House policy goals and lead to new UDAP rules.
Pursuant to the 1975 Magnuson-Moss…
President Biden issues Executive Order encouraging FTC rulemaking on consumer data collection, CFPB rulemaking on data portability, and CFPB UDAAP enforcement
By Kim Phan on
Last Friday, President Biden issued an Executive Order on Promoting Competition in the American Economy. Much of the Order is directed at increasing competition in the labor market, transportation, agriculture, healthcare, and technology. It calls on the FTC, the DOJ, and other agencies to pursue vigorous enforcement of the antitrust laws. The Order also…