Digital Marketing

Continuing its practice of setting sweeping policy by administrative action without prior notice or comment, the CFPB has issued an interpretive rule sharply curtailing the extent to which digital advertising and market strategies are exempted from the legal and compliance obligations associated with most parties directly providing consumer financial products or services and those acting as servicers to these entities.  The most immediate legal and reputational risk posed by this new policy is to technology-platform companies that use behavioral data to determine the products or services offered to consumers or those to whom consumers are directed.