Regulatory Enforcement + Compliance

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Late last year, we discussed the Federal Communications Commission’s (FCC) new rule aimed at closing the “lead generator” loophole by requiring telemarketers to obtain one-to-one consent from consumers for robocalls and robotexts. This rule mandates that consent must be provided for each individual seller or brand, rather than allowing a single consent to apply to multiple telemarketers. The rule also includes requirements for clear and conspicuous disclosures and ensures that robocalls and robotexts are logically and topically related to the interaction that prompted the consent. The new rule also permits blocking “red flagged” robotexting numbers, codifies do-not-call rules for texting, and encourages an opt-in approach for delivering email-to-text messages.

On November 14, the Consumer Financial Protection Bureau (CFPB or Bureau) filed a significant consent order against Global Tel Link Corporation (GTL), a company that provides communication and financial services to correctional facilities. The CFPB found that GTL, along with its subsidiaries Telmate, LLC and TouchPay Holdings, LLC, engaged in illegal practices that adversely affected incarcerated individuals and their friends and families.

On November 13, Representative Gary J. Palmer (R-AL) introduced House Joint Resolution 220, which seeks congressional disapproval of an advisory opinion published by the Consumer Financial Protection Bureau (CFPB or Bureau) relating to medical debt collection practices.

On November 12, the U.S. Court of Appeals for the Fifth Circuit denied a request from Community Financial Services Association of America (CFSA) and the Consumer Services Alliance of Texas to reopen their legal challenge against the Consumer Financial Protection Bureau’s (CFPB) payday loan rule. This decision effectively clears the path for the rule to be implemented.

On November 13, the Consumer Financial Protection Bureau (CFPB or Bureau) released a pilot study titled “Matched-Pair Testing in Small Business Lending Markets” highlighting what the CFPB believes were two statistically significant disparities in the treatment of Black and white small business owners seeking loans. First, the secret shopping study indicated that Black entrepreneurs were less encouraged by small business lenders to apply for loans. Specifically, such lenders expressed interest in obtaining loan applications from 40% of white participants, but only 23% of Black participants. Second, the study found that Black participants were more frequently steered toward alternative financing products — such as business credit cards or real estate-secured loans — compared to their white counterparts with similar or weaker business credit profiles. Specifically, non-requested or alternative credit products were discussed with 59% of Black participants, compared to 39% of white participants.

In our previous post, we discussed the New York City Department of Consumer and Worker Protection’s (NYC DCWP) decision to delay the enforcement of the amended debt collection rules from December 1, 2024, to April 1, 2025. This postponement was in response to industry concerns and a legal challenge filed by ACA International, Inc. and Independent Recovery Resources, Inc. Since then, NYC DCWP also announced it would delay the effective date for the amended rules to April 1, 2025 to align with the enforcement date.

Late last month, the Federal Trade Commission (FTC) filed suit against Global Circulation, Inc. (GCI) and its owner for engaging in deceptive and abusive debt collection practices. According to the FTC, the Georgia-based debt collector tricked consumers into paying more than $7.6 million in bogus debt. The lawsuit, filed in the United States District Court for the Northern District of Georgia, Atlanta Division, alleges violations of Section 5(a) of the FTC Act, the Fair Debt Collection Practices Act (FDCPA), and the Gramm-Leach-Bliley Act (GLB Act).

As discussed here, on February 15, 2024, the Federal Communications Commission (FCC) approved amendments to the rules and regulations implementing the Telephone Consumer Protection Act (TCPA). These amendments were purportedly aimed at strengthening consumers’ ability to revoke consent to robocalls and robotexts. Last month, the FCC announced that the new rules go into effect on April 11, 2025.

In Heckman v. Live Nation Entertainment, Inc., a panel of the Ninth Circuit affirmed a lower court decision refusing to enforce the Ticketmaster arbitration provision in a purported consumer antitrust class action brought against Ticketmaster and Live Nation. In reaching its decision, the panel concluded that the arbitration agreement in question was both procedurally and substantively unconscionable. Going further, the panel went out of its way to hold, “as an alternative and independent ground,” that the Federal Arbitration Act (FAA) does not apply to the special multi-party arbitrations contemplated for mass arbitrations by the arbitration agreement in question.