On Wednesday, May 8, the Federal Trade Commission hosted a special forum exploring small business lending practices, regulations, and policies. The forum consisted of three panels: (1) Overview of the Small Business Financing Marketplace, (2) Case Study on Merchant Cash Advances, and (3) Consumer Protection Risks and the Path Ahead, along with the opening remarks
FTC
FTC to Host Strictly Business: A Forum on Small Business Financing
By Alan S. Kaplinsky on
The FTC has announced that on Wednesday, May 8, it will host a forum on small business lending which will examine trends and consumer protection issues in the marketplace. The event will feature opening remarks by FTC Commissioner, Rohit Chopra, and closing remarks by FTC Bureau of Consumer Protection Director, Andrew Smith. We will be…
FTC confirms Holder Rule
By John L. Culhane, Jr. on
Posted in Federal CFS Monitor, FTC
The FTC has published a notice in the Federal Register announcing that it has decided to retain its Holder Rule without modification. The FTC stated in the notice that it received 19 comments, all of which urged retaining the rule.
As part of a systematic review of all of its rules and guides, the FTC…
This week’s podcast: A Look at the FTC’s Proposed GLBA Rules
By Barbara S. Mishkin on
Posted in CFPB Monitor, FTC
In this podcast, we explore the implications of the FTC’s proposed amendments to the GLBA Privacy Rule, which is limited to motor vehicle dealers, and the GLBA Safeguards Rule, which applies more broadly to all non-bank financial institutions subject to the FTC’s jurisdiction. We will take a closer look at the FTC’s shift away from…
FTC permanently bans payment processor for violating 2009 order requiring monitoring of merchant clients
By Barbara S. Mishkin on
A payment processor and its individual owner have entered into a settlement with the FTC to settle charges that they violated a 2009 federal district court order that required them to review and monitor their merchant clients to ensure that the merchants were not engaged in deceptive or unfair practices. The order is a stark…
Largest-Ever Crackdown Against Elder Fraud Led by the Department of Justice
By Kay Fitz-Patrick on
On March 7, 2019, the DOJ announced the largest coordinated sweep of elder fraud cases to date. Joined by the FBI and other federal and state partners, the DOJ held a press conference detailing the results of the coordinated effort. Coordinated law enforcement actions in the past year, they said, resulted in criminal cases against…
FTC Cites Need for Improvement in Compliance Reports
By Sarah T. Reise on
Posted in FTC, FTC Enforcement
Less than a week after warning subpoena and CID recipients to take their obligation to respond “seriously,” the FTC took aim at perceived inadequacies in compliance reports submitted pursuant to FTC consent orders and litigated judgments. In its March 11, 2019 blog post, the FTC’s Bureau of Competition alleges that “some Respondents are not…
Imposter Scams Top FTC’s List of 2018 Consumer Complaints
By Lindsay C. Demaree on
The FTC has issued its 2018 Consumer Sentinel Network Data Book. The report summarizes consumer complaints stored in the Consumer Sentinel Network, a secure online database.
For 2018, imposter scams top the list of reported complaint categories, accounting for 18% of the almost 3 million consumer reports summarized in the Data Book. Debt collection—which…
FTC and CFPB reauthorize MOU
By Barbara S. Mishkin on
The FTC and CFPB have reauthorized their memorandum of understanding. According to the FTC’s press release, “the agreement reflects the ongoing coordination between the two agencies under the terms of the Consumer Financial Protection Act, and is designed to coordinate efforts to protect consumers and avoid duplication of federal law enforcement and regulatory efforts.”…
FTC seeks comment on proposed amendments to safeguards and privacy rules
By Philip N. Yannella & Gina M. Pickerrell on
The FTC has proposed amendments to its 2003 Safeguards Rule and 2000 Privacy Rule, applicable to financial institutions under the Gramm Leach Bliley Act (GLBA). The proposed changes are informed by the FTC’s enforcement experience and are intended to keep pace with technological developments.
The Safeguards Rule requires financial institutions to have a comprehensive information…