FTC Tackles Credit-Card Digital Marketing
In an action with implications for all credit-card issuers, the FTC today ordered Credit Karma to pay $3 million to consumers allegedly harmed by the company’s marketing misrepresentations. The Commission’s complaint claims that Credit Karma’s use of digital dark patterns – user interfaces designed to steer consumers to choices in a company’s, rather than their own, interest – enticed consumers into applying for credit cards for which they did not qualify.
Hsu Presses for Responsible Innovation
In remarks today generally focused on community banks, Acting Comptroller Hsu also focused on ways to ensure that small banks safely enter digital finance. The OCC is reinvigorating a 2015 effort to encourage partnerships among community banks that pool resources and expertise – what we would call a new approach to bankers’ banks focused here on technology innovation.
IMF Stakes Out New Stablecoin Standards
The IMF today released a flurry of articles outlining the benefits and risks of DeFi and digital assets, with one article warning against regulating stablecoins like banks.