CFPB, Federal Agencies, State Agencies, and Attorneys General
On the same day that she was confirmed as an FTC Commissioner by the full Senate, Lina Khan was designated FTC Chair by President Biden and sworn in as Chair.
Ms. Khan fills the FTC seat vacated by former FTC Chairman Joseph Simons (and gives Democrats a 3-2 majority pending Commissioner Rohit Chopra’s confirmation as CFPB Director). … Continue Reading
Today, by a vote of 69-28, the full Senate confirmed Lina Khan to serve as FTC Commissioner.
Ms. Khan will fill the FTC seat vacated by former FTC Chairman Joseph Simons. His remaining term runs through September 2024. Ms. Khan’s confirmation means the Democrats now hold a 3-2 Democratic majority, with the Democratic Commissioners consisting of Ms.… Continue Reading
In our recent webinar, “The Consumerization of Small Business Lending: Significant Developments and Trends,” Ballard attorneys were joined by special guest Malini Mithal, Associate Director of the Federal Trade Commission’s Division of Financial Practices. Mark Furletti, Co-Chair of the firm’s Consumer Financial Services Group also participated in the webinar, together with John Socknat, a partner in the CFS Group, and Aileen Ng, an associate in the Group. … Continue Reading
In a recent blog post, the FTC explained the role of closing letters issued by the staff of its Bureau of Consumer Protection.
The FTC indicates that it views the closing letters as a supplement to its enforcement activity. It states that the letters inform a company or individual that the FTC is closing its investigation into their conduct. … Continue Reading
Federal and state courts, lawmakers, and regulators are increasingly recognizing that, in contrast to large businesses, small businesses often lack the sophistication needed to operate on an equal footing with providers of commercial financing. As a result, there has been a growing body of legislative, regulatory, and enforcement activity on the federal and state levels directed at protecting small businesses from practices that are targeted by consumer protection laws.… Continue Reading
Earlier this week, FTC Acting Chairwoman Rebecca Kelly Slaughter sent a letter to the Chair and Ranking Member of the House Commerce Committee responding to a letter sent to the lawmakers by the U.S. Chamber of Commerce regarding the legislation that has been introduced to amend Section 13(b) of the FTC Act. … Continue Reading
The Senate Commerce Committee voted yesterday to advance President Biden’s nomination of Lina Khan to serve as FTC Commissioner. Only four Republican Senators voted not to advance Ms. Khan, which is viewed as an indication of bipartisan support for a change in the FTC’s approach to antitrust regulation and enforcement. The nomination now moves to a vote by the full Senate.… Continue Reading
On April 27, 2021, the House Committee on Energy and Commerce held a hearing titled, “The Consumer Protection and Recovery Act: Returning Money to Defrauded Consumers.” This hearing was held five days after the U.S. Supreme Court ruled that § 13(b) of the Federal Trade Commission Act (the “Act”) does not authorize the FTC to seek, or a court to award, equitable monetary relief such as restitution or disgorgement. … Continue Reading
The California Supreme Court recently agreed to hear an appeal in Pulliam v. HNL Automotive Inc., a case with significant implications for the amount of money a plaintiff can recover when proceeding against a dealer/seller under the FTC Holder Rule.
Officially titled the “Trade Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses,” the Holder Rule requires sellers that arrange for or offer credit to finance the purchase of consumer goods or services to include a specified “holder notice” in the credit contract. … Continue Reading
The Federal Trade Commission recently announced that it has settled the lawsuit it filed against Yellowstone Capital LLC, a provider of merchant cash advances, and its chief executive officer and president for alleged unfair and deceptive conduct in violation of section 5 of the FTC Act, 15 U.S.C. § 45.
In its Complaint, the FTC alleged that the defendants engaged in deceptive acts or practices by (1) representing that they did not require collateral or personal guarantees from business owners when, in reality, they did require business owners to grant a purported security interest or lien on all business property they owned, and (2) representing that the defendants would provide the business owners a certain amount of funding when, in reality, the amount provided was substantially less as a result of withholding fees that were not clearly and conspicuously disclosed. … Continue Reading
