Our special guest is Andrew Nigrinis, PhD, who formerly served as Enforcement Economist for the Consumer Financial Protection Bureau. We first discuss what is meant by “dark patterns” and the types of digital practices identified by the CFPB and Federal Trade Commission as “dark patterns.” We then look at the CFPB ‘s position regarding the use of “dark patterns” as an unfair, deceptive, or abusive act or practice under the Consumer Financial Protection Act, the FTC’s position regarding the use of “dark patterns” as anticompetitive and/or a violation of the FTC Act prohibition of unfair or deceptive acts or practices, and the relationship between “dark patterns” and behavioral economics. … Continue Reading
FTC
Seventh Circuit Holds FTC Act Does not Allow Disgorgement to U.S. Treasury
In FTC v. Credit Bureau Center, LLC, the Seventh Circuit recently held that Section 19 of the Federal Trade Commission Act does not allow the FTC to deposit excess funds awarded as restitution under Section 19 in the U.S. Treasury as disgorgement.
In the underlying action, the FTC alleged Credit Bureau Center, LLC (“CBC”) used “negative option features” on its websites which offered visitors a free credit report but automatically enrolled them in a $29.94 monthly membership subscription.… Continue Reading
This week’s podcast episode: Should Section 5 of the FTC Act be amended to add a private right of action?
Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices, does not include a private right of action. Our special guest, Professor Myriam E. Gilles of Cardozo Law School, has written a law review article in which she makes the case for adding a private right of action to Section 5. … Continue Reading
FTC recommends use of written adverse action notices by housing providers
A new FTC blog post titled “Tenant background check reports: Put it in writing” reminds landlords, property managers, and other housing providers of their obligation under the Fair Credit Reporting Act to provide notice of adverse action when information in a consumer report leads them to deny housing to an applicant or require the applicant to pay a deposit that other applicants would not be required to pay. … Continue Reading
This week’s podcast episode: What the Biden Administration’s “junk fees” initiative means for the consumer financial services industry: a look at the fees under attack, Part II
The Biden Administration has launched an initiative directed at combatting so-called “junk fees,” with the CFPB and FTC leading the Administration’s efforts. In Part II of this two-part episode, we first look at CFPB supervisory activity relating to auto servicing, mortgage servicing, payday and small dollar loans, and student loan servicing. … Continue Reading
This week’s podcast episode: What the Biden Administration’s “junk fees” initiative means for the consumer financial services industry: a look at the fees under attack, Part I
The Biden Administration has launched an initiative directed at combatting so-called “junk fees,” with the CFPB and FTC leading the Administration’s efforts. In Part I of this two-part episode, we first discuss the various definitions offered by the White House, CFPB, and FTC for what constitutes a “junk fee” and the types of fees they have labeled “junk fees.” … Continue Reading
White House announces Republican nominees for FTC
The White House has announced that President Biden intends to nominate Andrew N. Ferguson and Melissa Holyoak to fill the two open Republican Commissioner seats on the Federal Trade Commission.
Mr. Ferguson currently serves as the Virginia Solicitor General. He previously served as Chief Counsel to U.S. Senate Republican Leader Mitch McConnell from 2019 to 2021. … Continue Reading
FTC settles lawsuit against Publishers Clearing House involving alleged use of “dark patterns”; Ballard Spahr to hold Aug. 16 webinar
Less than a week after announcing that it had filed a civil case against Amazon alleging that the company used “dark patterns” to enroll people in its Prime program, the FTC announced that it has entered into a settlement with Publishers Clearing House (PCH) to settle charges involving PCH’s use of “dark patterns.”… Continue Reading
FTC action against Amazon targets alleged use of digital dark patterns as unfair to consumers; Ballard Spahr to hold Aug. 16 webinar
Last week, the FTC filed a civil case against Amazon alleging that the company used “dark patterns” to enroll people in its Prime program. The case continues a pattern initiated by FTC Chair Lina Khan of challenging web-based marketing tactics of consumer-facing businesses as deceptive and anticompetitive on the grounds that they impede consumer choice and can be used by dominant firms as a tactic to exclude competitors. … Continue Reading
FTC and consumer groups file amicus briefs in Seventh Circuit in support of CFPB’s appeal from district court ruling in Townstone Mortgage that ECOA only applies to applicants
The FTC has filed an amicus brief in support of the CFPB’s appeal to the U.S. Court of Appeals for the Seventh Circuit from the district court’s decision in the CFPB’s enforcement action against Townstone Mortgage (Townstone). In the case, the district court ruled that a redlining claim may not be brought under the Equal Credit Opportunity Act (ECOA) because the statute only applies to applicants.… Continue Reading