In 2021, the U.S. Supreme Court held unanimously in AMG Capital Management, LLC v. Federal Trade Commission that the Federal Trade Commission is not entitled to consumer redress in cases brought under Section 13(b) of the FTC...more
The Federal Trade Commission added teeth to its prior marketing guidance with the release August 14 of its final trade regulation Rule for Consumer Reviews and Testimonials ("Rule," 16 CFR Part 465). ...more
8/16/2024
/ Advertising ,
Artificial Intelligence ,
Celebrities ,
Celebrity Endorsements ,
Consumer Product Companies ,
Endorsements ,
Fake Reviews ,
Federal Trade Commission (FTC) ,
Final Rules ,
Marketing ,
Online Endorsements ,
Online Reviews ,
Social Media ,
Testimonial Statements ,
Unfair or Deceptive Trade Practices
I counsel many clients on advertising compliance, and one frequent topic of discussion in that work relates to use of "up to" and "as low as" advertising claims. Companies naturally want to give this information to potential...more
On July 9, 2024, the CFPB issued a consent order and proposed court order against the Company, the former citing allegedly unlawful repossessions, and the latter citing allegedly unlawful sales practices. The consent order...more
7/15/2024
/ Bank Holding Company ,
Consent Order ,
Consumer Financial Contracts ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Cards ,
EFTA ,
Enforcement Actions ,
Fair Credit Reporting Act (FCRA) ,
Financial Services Industry ,
Regulation E ,
Repossess
On May 7, 2024, the CFPB imposed a total of $4.6 million in redress and fines on the Company for allegedly withholding account-closure refunds to its consumers for an unreasonable amount of time....more
On February 16, 2024, the Federal Communications Commission released a Report and Order establishing significant new standards regulating Telephone Consumer Protection Act consent and revocation of consent. In recent weeks,...more
4/4/2024
/ Amended Regulation ,
Artificial Intelligence ,
Auto-Dialed Calls ,
Compliance ,
Consent ,
Do Not Call List ,
FCC ,
OMB ,
Opt-Outs ,
Regulatory Standards ,
Revocation ,
Robocalling ,
Rulemaking Process ,
TCPA ,
Telecommunications ,
Telemarketing ,
Text Messages ,
Wireless Industry
On March 7, 2024, the Federal Trade Commission announced significant amendments to its Telemarketing Sales Rule. The effective dates for these changes are tied to publication of this announcement in the Federal Register,...more
The CFPB and Justice Department sued a Texas-based developer and its affiliates, as well as a mortgage lender, alleging they operate a deceptive and discriminatory land sales scheme targeting Hispanic borrowers by selling...more
On November 20, 2023, the CFPB imposed a $60 million penalty on an indirect auto lender for allegedly hindering borrowers from cancelling product bundles, elevating their monthly car loan payments. The Company is also alleged...more
On September 8, 2023, the Federal Trade Commission announced that its administrative law judge had issued an Initial Decision and Order in the FTC's case against Intuit, alleging that the company had deceptively marketed the...more
On October 17, 2023, the CFPB took action against a nonbank fintech Company providing international money transfer services for alleged EFTA, Regulation E, and CFPA violations. The fintech Company operates throughout the...more
On September 11, 2023, the CFPB filed an administrative consent order against a Nonbank Consumer Finance Company, with its principal place of business in Manchester, New Hampshire. The order alleges that the Company concealed...more
The Real Estate Settlement Procedures Act prohibits mortgage loan originators from offering incentives to other companies in exchange for referring homebuyers to them for mortgage loans.
The Bureau alleged that the...more
8/21/2023
/ Civil Monetary Penalty ,
Client Referrals ,
Consent Order ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Enforcement Actions ,
Kickbacks ,
Mortgage Loan Originators ,
Mortgages ,
Real Estate Brokers ,
RESPA
On July 11, 2023, the CFPB announced two consent orders against a large national bank, settling allegations that the bank illegally charged consumers multiple non-sufficient fund fees for the same transaction, withheld cash...more
7/12/2023
/ Banks ,
Civil Monetary Penalty ,
Consent Order ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Cards ,
Enforcement Actions ,
Fair Credit Reporting Act (FCRA) ,
Fees ,
Regulation Z ,
Returned Check Fees ,
Sensitive Personal Information ,
Truth in Lending Act (TILA)
The CFPB settled a lawsuit originally filed in January 2020 against a large national bank, claiming it violated the Truth in Lending Act and its implementing Regulation Z, as well as the Consumer Financial Protection Act, by...more
5/25/2023
/ Banking Sector ,
Billing Errors ,
Civil Monetary Penalty ,
Consumer Complaint Management ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Cards ,
Enforcement Actions ,
Fees ,
Financial Services Industry ,
Regulation Z ,
Truth in Lending Act (TILA) ,
Unauthorized Transactions
I hope that many of you were able to power down during the holidays before ramping up again to start 2023. The FCC, however, maintained a busy pace of announcements, releasing news on several issues regarding the Telephone...more
On December 22, 2022, the CFPB filed an administrative consent order against an International Remittance Company headquartered in Rochelle Park, New Jersey. The order alleges that from 2013 until 2021, the International...more
HIGHLIGHTS: The CFPB sued an online event registration and payment processing service company for allegedly illegally and automatically enrolling consumers into membership subscriptions. The agency's complaint alleges that...more
HIGHLIGHTS: CFPB fined the Fintech Company $2.7 million and ordered that it make at least $68,145 in consumer redress for overdraft fees and other costs incurred by consumers. The Fintech Company neither admitted nor denied...more
HIGHLIGHTS: The CFPB settled allegations that a large national bank unlawfully froze consumers' benefit accounts as a result of an inaccurate fraud detection program that made it difficult for people to unfreeze their...more
HIGHLIGHTS: The CFPB announced a complaint against a single defendant - the owner of a student loan debt relief company - concerning unauthorized charges and withdrawals from student borrower accounts in violation of the...more
On January 25, 2022, the Federal Trade Commission released a proposed settlement in an advertising enforcement action and related business education materials that should be required reading for any company that operates a...more
The Federal Trade Commission sounds like a broken record. We have repeatedly written about the trouble misleading endorsements and testimonials can cause. Endorsements, testimonials, and social media influencers currently sit...more
The Telephone Consumer Protection Act creates a seemingly endless list of compliance challenges and other headaches for companies determined to mitigate the financial cost and resource burden of TCPA litigation. This year...more
Maryland Commissioner of Financial Regulation Asserts Action against Non-Maryland State Bank for Lending Without State License -
On January 21, 2021, the Maryland Commissioner of Financial Regulation filed an...more