In October 2023, the FTC issued a proposed “Rule on Unfair or Deceptive Fees” targeting what the FTC refers to as “junk fees.” Our special guest is Stacy Cammarano, Staff Attorney in the FTC’s Bureau of Consumer Protection, Division of Advertising Practices, and a lead attorney on the proposal. After reviewing how the FTC has previously used its enforcement authority to address “junk fees,” we discuss some of the key issues identified in comments received by the FTC on its October 2022 Advance Notice of Proposed Rulemaking on “junk fees.” … Continue Reading
FTC
CFPB issues annual FDCPA report; FTC issues annual letter on debt collection to CFPB
The CFPB has issued its annual Fair Debt Collection Practices Act report covering the CFPB’s debt collection activities in 2022. The report incorporates information from the FTC’s most recent annual letter to the CFPB describing its 2022 activities in the debt collection market.
CFPB Report. The CFPB report includes a “spotlight” section on the collection of medical bills. … Continue Reading
FTC announces settlement with operator of personal finance mobile app alleged to have used “dark patterns” in connection with negative option
The Federal Trade Commission recently announced that it has entered into a settlement with Bridge It, Inc. (“Brigit”), the operator of a personal finance mobile application, to resolve the FTC’s allegations that Brigit engaged in unfair and deceptive acts or practices in violation of Section 5 of the FTC Act and engaged in conduct that violated the Restore Online Shoppers’ Confidence Act (“ROSCA”). … Continue Reading
FTC targets deceptive practices in merchant cash advance case
The Federal Trade Commission recently prevailed on summary judgment in a case against Jonathan Braun and his company RCG Advances, LLC. The product at issue, merchant cash advances, generally provide small businesses with critical and timely financing, and there was no dispute that the defendants gave these businesses upfront lump-sums of money in exchange for the right to collect future receivables. … Continue Reading
FTC announces new Safeguards Rule breach notification requirements
On October 27, the Federal Trade Commission (“FTC”) unanimously voted to amend the Safeguards Rule to require non-banking financial institutions, such as mortgage brokers, motor vehicle dealers, and payday lenders, to report data breaches and security events to the Agency. This amendment will become effective 180 days after its publication in the Federal Register.… Continue Reading
FTC and Wisconsin AG enter into settlements with auto dealerships for alleged discriminatory financing practices and deceptive add-on product practices
The Federal Trade Commission and Wisconsin Attorney General have entered into settlements with a group of auto dealerships, their current and former corporate owners, and their general manager for allegedly engaging in unlawful discrimination in connection with financing offered to customers and for allegedly engaging in deceptive practices in connection with the sale of add-on products. … Continue Reading
White House Republican nominees for FTC advance in Senate
Last Wednesday, the Senate Commerce Committee voted to advance President Biden’s nominees to fill the two open Republican Commissioner seats on the Federal Trade Commission: Andrew N. Ferguson and Melissa Holyoak. The nominations, which were approved by a voice vote, will now be voted on by the full Senate.
The Committee also unanimously advanced the renomination of current FTC Commissioner Rebecca Kelly Slaughter. … Continue Reading
CFPB and FTC announce settlements with TransUnion
The CFPB and FTC announced last week that they had entered into a settlement with Trans Union LLC (TU LLC) to resolve a lawsuit filed jointly in a Colorado federal district court by the agencies alleging that TU LLC and its subsidiary, TransUnion Rental Screening Solutions, Inc. (TURSS), violated the Fair Credit Reporting Act (FCRA), the FTC Act, and the Consumer Financial Protection Act (CFPA) by failing to ensure the accuracy of tenant screening reports by including inaccurate and incomplete eviction records about consumers. … Continue Reading
White House, CFPB, FTC continue assault on “junk fees”
On November 28, 2023, from 1:00 p.m. to 2:30 p.m. ET, Ballard Spahr attorneys will hold a webinar on the most recent actions of the White House, CFPB, and FTC in the Biden Administration’s assault on so-called “junk fees.” To register, click here.
Last Wednesday, we published three blog posts about new actions taken by the CFPB and FTC related to the Biden Administration’s war on “junk fees”:
- FTC issues proposed rule to regulate “junk fees”
- CFPB Supervisory Highlights Update Special Edition looks at “junk fees” charged In connection with deposits, auto servicing, and remittances
- CFPB issues advisory opinion on fees charges by large banks and credit unions to respond to information requests and releases data showing elimination of NSF fees
Also last Wednesday, the White House held an event at which President Biden spoke about these new developments as well as developments at other federal agencies to curb “junk fees” charged by companies subject to the jurisdiction of such agencies. … Continue Reading
FTC issues proposed rule to regulate “junk fees”
As part of the White House’s latest round of efforts targeting so-called “junk fees,” the Federal Trade Commission has issued a proposed rule, “Rule on Unfair or Deceptive Fees.” The proposal follows the FTC’s issuance in October 2022 of an Advance Notice of Proposed Rulemaking to address “junk fees,” a term that was used in the ANPR Notice to refer to “unfair or deceptive fees that are charged for goods and services that have little or no added value to the consumer.” … Continue Reading