Regulatory Enforcement + Compliance

Subscribe to Regulatory Enforcement + Compliance via RSS

On January 3, the Federal Trade Commission (FTC) issued a press release announcing that accessiBe Inc. and accessiBe Ltd. (collectively, accessiBe) agreed to pay $1 million to settle allegations of deceptive advertising practices in violation of the FTC Act. Specifically, the FTC’s complaint alleged that accessiBe misrepresented the artificial intelligence (AI) capabilities of its website accessibility tool, accessWidget, to make websites compliant with the Web Content Accessibility Guidelines (WCAG). The FTC further alleged that accessiBe paid for reviews on third-party websites that were formatted to appear as the opinions of impartial authors and publications and failed to disclose material connections to such online reviewers.

Last week, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released final regulations that significantly impact the reporting requirements for brokers involved in digital asset transactions. The stated aim of the new rules, which are part of the Biden-Harris Administration’s implementation of the bipartisan Infrastructure Investment and Jobs Act, is to streamline tax reporting and ensure compliance within the decentralized finance (DeFi) sector. The regulations will become effective 60 days after their publication in the Federal Register.

In a significant enforcement action, the Federal Trade Commission (FTC) and the Illinois Attorney General have reached a $20 million settlement with Leader Automotive Group and its Canadian parent company, AutoCanada, over allegations of widespread consumer fraud. If entered, this settlement will be the largest monetary judgment the FTC has secured against an auto dealer.

On December 18, the U.S. Court of Appeals for the Eleventh Circuit held oral arguments in Insurance Marketing Coalition Limited (IMC) v. Federal Communication Commission (FCC), which challenges the FCC’s December 2023 order under the Telephone Consumer Protection Act (TCPA). The stated aim of the order is to reduce unwanted robocalls and texts by closing the “lead generator loophole,” and require “one-to-one consent” for telemarketing communications. The new rule is set to take effect next month. However, during oral arguments, the Eleventh Circuit judges expressed skepticism about the FCC’s justification for its new rule.

This article was republished on insideARM on January 2, 2025.

This week, the Consumer Financial Protection Bureau (CFPB or Bureau) released its semiannual regulatory agenda, outlining its planned rulemaking initiatives. This agenda includes a mix of rules in the pre-rulemaking, proposed rule, and final rule stages, covering a wide range of topics from medical debt reporting to financial data transparency. The CFPB releases regulatory agendas twice a year in voluntary conjunction with a broader initiative led by the Office of Budget and Management to publish a Unified Agenda of Regulatory and Deregulatory actions across the federal government.

On December 17, the Federal Trade Commission (FTC) announced the release of its final Rule on Unfair or Deceptive Fees, also known as the “Junk Fee Rule”, which aims to address so-called bait-and-switch pricing tactics and other deceptive practices in the live-event ticketing and short-term lodging industries. This rule, codified at 16 CFR Part 464, specifically targets practices that purportedly hide the total price of an item or service and misrepresent fees and will go into effect 120 days after publication in the Federal Register.

On December 16, the Consumer Financial Protection Bureau (CFPB or Bureau) released a special edition of its Supervisory Highlights, detailing a range of activities identified by CFPB examiners across the student loan origination and servicing markets. According to the Bureau, student loans represent the second-largest form of U.S. consumer debt at more than $1.7 trillion in total outstanding balances. The Bureau has been heavily focused on student lending issues for the past several years, and this latest special edition of Supervisory Highlights underlines that focus.

On December 12, the Consumer Financial Protection Bureau (CFPB or Bureau) announced the finalization of its rule addressing overdraft fees. The rule targets financial institutions with more than $10 billion in assets, imposing new restrictions and requirements on how these institutions manage and charge for overdraft services. However, with the upcoming change in administration, questions remain as to whether the final rule will ever take effect.

On December 9, the Consumer Financial Protection Bureau (CFPB or Bureau) announced the launch of a rulemaking process addressing credit reporting on survivors of domestic violence, elder abuse, and other forms of financial abuse.

On December 10, the National Credit Union Administration (NCUA) issued a letter to all federally insured credit unions, highlighting the risks associated with certain overdraft and non-sufficient funds (NSF) fee practices. The letter emphasizes the potential harm to consumers and the heightened risks to credit unions, including reputational, consumer compliance, third-party, and litigation risks, resulting…