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CFPB orders tech giants to submit payments system info
The CFPB Thursday issued a series of orders to collect information on the business practices of large technology companies operating payments systems in the U.S., such as Google, Amazon, Apple, Facebook, PayPal, and more, with the goal of gaining a better understanding of how these firms use personal payments data and manage data access to users to ensure adequate consumer protection.
“Today’s action by the CFPB is a welcome step in ensuring that consumers are protected from the growing, and unchecked, influence of fintech companies," said NAFCU President and CEO Dan Berger in response to the announcement. "We urge the CFPB to use its ‘larger participant’ authority to bring much needed supervisory oversight of fintech companies providing financial services. We stand ready to work with regulators and policymakers to identify additional legislative and regulatory solutions to protect consumers from payment providers that are not comprehensively supervised, including a national data privacy standard.”
The orders are pursuant to Section 1022(c)(4) of the Consumer Financial Protection Act and build on efforts from the Federal Trade Commission's (FTC) to shed light on business practices of the largest technology companies in the world.
Specifically, through the orders, the CFPB is seeking information on:
- data harvesting and monetization;
- access restrictions and user choice; and
- other consumer protections.
Read the full statement of CFPB Director Rohit Chopra on this action.