Regulatory Enforcement + Compliance

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As of April 27, 2025, the Federal Trade Commission (FTC) had not filed a petition for a writ of certiorari to appeal the Fifth Circuit’s decision vacating the Combating Auto Retail Scams Trade Regulation Rule (CARS Rule). The ruling, which was issued in response to a petition by the National Automobile Dealers Association and the Texas Automobile Dealers Association, challenged the procedural validity of the FTC’s rulemaking process. The court found that the FTC failed to issue an advance notice of proposed rulemaking as required leading to the vacating of the rule.

Yesterday, the U.S. Court of Appeals for the District of Columbia Circuit issued an order temporarily halting the Consumer Financial Protection Bureau’s (CFPB or Bureau) mass layoffs. The court granted an emergency motion to enforce or clarify its previous order, reinstating the preliminary injunction that prevents the CFPB from executing reductions in force (RIFs).

Yesterday, President Donald J. Trump issued an executive order titled “Restoring Equality of Opportunity and Meritocracy.” This order aims to eliminate the use of disparate impact liability in all contexts, emphasizing the importance of treating all citizens equally under the law and promoting a merit-based, colorblind society.

This blog post was republished in insideARM on May 6, 2025.

On April 21, the U.S. Department of Education announced that its Office of Federal Student Aid (FSA) will resume collections on defaulted federal student loans starting Monday, May 5th. This decision ends a collections pause that has been in place since March 2020. According to the announcement, the resumption of collections is intended to protect taxpayers from bearing the cost of federal student loans that borrowers undertook to finance their education.

At an emergency hearing this morning in National Treasury Employees Union v. Vought, Judge Amy Berman Jackson once again halted the layoffs of over 1,000 employees at the Consumer Financial Protection Bureau (CFPB). The judge emphasized the need for a comprehensive record to determine whether the firings complied with the D.C. Circuit’s order from last week (discussed here).

The Consumer Financial Protection Bureau (CFPB or Bureau) is undergoing significant changes as the Trump administration implements sweeping layoffs just days after revising the Bureau’s regulatory priorities. According to reports, approximately 1,400-1,500 employees have received reduction-in-force notices, leaving the CFPB with just over 200 personnel to carry out its regulatory activities. This drastic reduction raises critical questions about the agency’s ability to effectively focus on its newly outlined priorities for 2025.

This article was republished on insideARM on April 22, 2025.

Yesterday, the Consumer Financial Protection Bureau (CFPB or Bureau) released a memo to staff outlining its new supervision and enforcement priorities for 2025.

As technology advances, so do the tactics of scammers. The Federal Trade Commission (FTC) recently released a data spotlight on the top text scams of 2024, revealing a significant increase in financial losses despite a decrease in the number of reports. Specifically, in 2024, reported losses to text scams reached $470 million, more than five times the amount reported in 2020. Due to a lack of reporting, this number reflects only a fraction of the actual losses.

On April 1, the American Arbitration Association (AAA) announced the launch of its new Consumer Mediation Procedures and Fee Schedule. According to the announcement, updates aim to simplify and make dispute resolution more accessible for consumers, particularly those who are self-represented and may be unfamiliar with the mediation process. Prior to the adopting the procedures, the AAA did not have any processes in place for explaining the benefits of mediation or disclosing the fees associated with using a AAA mediator.