The brokerage and dealer sectors have faced significant developments in regulatory matters this September. These updates, encompassing enforcement actions, public statements, guidance, and rulemakings, have mainly been initiated by federal and state financial services regulatory agencies. A round-up of these recent changes was compiled by Davis Wright Tremaine LLP. The digest emphasizes on several crucial…
Involved parties and esteemed readers, the banking and consumer regulatory landscapes are continually adapting. Transformative decisions by regulatory bodies along with rulemakings and public statements, can significantly affect corporate legal strategies and cross-border transactions. It is, therefore, instrumental to stay abreast of these developments. In this regard, the September 2023 edition of the Banking and…
The Consumer Financial Protection Bureau (CFPB) has extended a warning to financial institutions about the reopening of deposit accounts previously closed by consumers. According to Circular 2023-02, the bureau warns that the unilateral reopening of a deposit account, to process deposits or debits, could be deemed as an unfair practice under the Consumer Financial Protection…
On August 23, 2023, in a move that the Securities and Exchange Commission (SEC) claims will bring greater “transparency” to the functioning of private funds, the SEC adopted a swath of reforms for private fund managers. This adoption signifies an attempt to mitigate potential conflicts of interest and restrict or necessitate the disclosure of preferential…
On September 20th, the Consumer Financial Protection Bureau (CFPB) published guidance concerning credit denials by lenders using artificial intelligence. The directive, alluded to as ‘Consumer Financial Protection Circular, 2023-03’, explores guidelines from the perspective of the Equal Credit Opportunity Act, as well as its affiliated Regulation, Regulation B. The aim was to illuminate the roster…
On July 18, 2023, Oregon became one of the additional states to pass a comprehensive consumer privacy law. The legislation, titled the “Oregon Consumer Privacy Act”, was signed into law by Governor Tina Kotek. This places Oregon among several states in the U.S., including California, Utah, Colorado, Connecticut, Virginia, Iowa, Indiana, Tennessee, Montana, Texas, and…
The Internal Revenue Service (IRS) has recently issued guidelines pertaining to the pharmaceutical excise tax, a tax that could impact certain drug manufacturers, producers, and importers if they fail to negotiate a drug-pricing agreement with the US Secretary of Health and Human Services. This guidance comes as part of ongoing efforts to regulate drug prices…
In this week’s issue of Food Venture Financing News, multinational food processing company, TreeHouse Foods, has announced plans to sell one of its snack businesses and manufacturing plants to John B. Sanfilippo & Son. The deal, reported to be worth an estimated $63 million in cash, is expected to conclude within the coming 30 days….
In a recent development, the Consumer Financial Protection Bureau (CFPB) has indicated that lenders employing Artificial Intelligence (AI) or other complex credit models, cannot in all situations rely on the checklist of reasons provided in Regulation B sample forms for adverse action notices. The announcement was made in a new guidance issued by the agency….
California is making strides in its efforts to strengthen regulatory oversight of health care transactions, according to a recently published report. This move mirrors efforts by several other states which have either pursued or achieved similar legislative advancements. The focus of these enactments is to ensure increased scrutiny and transparency in healthcare dealings. The Office…
In a recent development, Pharm-Pacc disclosed a significant data breach on their computer network. On September 14, 2023, Pharm-Pacc filed a formal notice acknowledging the incident to the Attorney General of Montana. The company faced an intrusion in its systems, leading to unauthorized access to its customer database. This unauthorized access ultimately resulted in personal…
Delta Dental of California, one of the largest dental insurance providers in the country, has recently experienced a significant data breach due to what appears to be a vulnerability within MOVEit, a file-transfer application widely utilized by the company. The breach was officially reported to the U.S. Department of Health and Human Services Office for…
The Ontario Securities Commission (OSC) has issued a recent extension to a temporary exemption from the order-execution only (OEO) trailer ban. The Rule 81-509 Extension adds to Ontario Instrument 81-508 Temporary Exemptions, designed to aid Dealer Rebates of Trailing Commissions and Client Transfers (collectively known as “the Rule”). This latest development sees the temporary relief…
The EU’s Corporate Sustainability Reporting Directive (“CSRD”) is setting new standards for ESG reporting and disclosures across the globe. Mandating intricate reporting requirements, it’s predicted to impact over 50,000 companies. Of these, at least 10,000 are not EU-headquartered, with over 3,000 being U.S. companies. These companies will have to provide detailed disclosures across a broad…
In the evolving landscape of environmental and sustainability marketing, corporate legal teams worldwide are paying close attention to recent developments in Australia. The Australian Competition and Consumer Commission (ACCC) has taken steps to improve the credibility of environmental claims made by businesses as well as to protect consumers from questionable practices, colloquially referred to as…
Lawyers, legal researchers, and corporate executives should track the United States Copyright Office’s (USCO) Notice of Inquiry (NOI) on Artificial Intelligence (AI). The decisions made over the next half a year to a year regarding AI regulations and copyright laws will impact all industries equally. AI is pervading various industry sectors, including healthcare and energy….
In our fast-paced evolving business landscape, the responsiveness of a corporation to consumer complaints continues to serve as a crucial determinant of their success or failure. The importance of a strong consumer complaint response structure is particularly noted for companies offering financial products or services to consumers, such as deposit accounts, loans, credit cards, or…
In a significant legal development last week, the Federal Trade Commission (FTC) emerged victorious in its ongoing tussle with Intuit, the company behind TurboTax tax-preparation software. This latest bout saw an administrative law judge (ALJ) declaring that Intuit’s advertisement of a TurboTax offering as “free” was misleading, and subsequently ordering Intuit to abstain from advertising…
Join us as we delve into the recent developments with the Consumer Financial Protection Bureau’s (CFPB) proposed rulemaking under the Fair Credit Reporting Act (FCRA). This discussion forms part of a special three-part series, within which legal experts from Troutman Pepper provide their insights and analysis. The third part of this critical exploration, available through…
In a significant legal development, a California Court of Appeals recently ruled that a solar energy company is subject to a California Rosenthal Fair Debt Collection Practices Act (Rosenthal FDCPA) claim. The Court’s decision, made on August 30, 2023, explored whether the Rosenthal FDCPA protects a non-party to an agreement to pay for electricity produced…
In the latest episode of The Consumer Finance Podcast, a discussion was held regarding the Consumer Financial Protection Bureau’s (CFPB’s) intention to propose new rules under the Fair Credit Reporting Act (FCRA). You can find the podcast here. This episode presents the third part of a special series focusing on the CFPB’s rulemaking process. The…
In an enlightening discussion during a recent Consumer Finance Monitor Podcast, Andrew Nigrinis, PhD, a former Enforcement Economist for the Consumer Financial Protection Bureau (CFPB), offered his insights on the concept of “dark patterns” and how the practice is regarded by various regulators. The term “dark patterns” refers to the types of digital practices that…
The Consumer Financial Protection Bureau (CFPB) has recently issued a detailed report reflecting potential financial risks to students in relation to school-issued tuition payment plans. This initiative follows a broad analysis of payment plan terms from nearly 450 different institutions. According to the official documentation, while a significant portion of tuition payment plans do not…
The Consumer Financial Protection Bureau (CFPB) has recently issued a final rule amending dollar amounts under certain provisions of the Truth in Lending Act (TILA), among others. This action was taken in accordance with the annual percentage change seen in the consumer price index (CPI). Notably, these provisions include those under the Home Ownership and…
Bankruptcy statistics in 2023 offer significant insights that could aid legal professionals in realigning their practice focus for the remaining part of the year. According to a detailed article on JD Supra, it has been an eventful year in bankruptcy so far. Filings have increased in several chapters, offering an opportunity to assess the commercial…