#digital dark patterns

19 01, 2023

DAILY011923

2023-01-19T16:52:02-05:00January 19th, 2023|2- Daily Briefing|

CFPB Circular Tightens UDAAP Grip On Negative-Option Marketing

Building on recent enforcement actions targeting “digital dark patterns,” the CFPB today issued a circular taking aim at negative-option programs that it believes mislead consumers into unwanted, automatic subscription renewals.  The circular stipulates that such practices are against the law and may constitute UDAAP violations (see FSM Report CONSUMER39).  Behaviors the Bureau says risk CFPA violation or qualify as UDAAP include failures of disclosure and informed consent when negative option programs are in place as well as “unreasonable” impediments to cancellation requests.

Daily011923.pdf

18 10, 2022

DAILY101822

2022-10-18T17:16:23-04:00October 18th, 2022|2- Daily Briefing|

CFPB Uses Enforcement Action to Press Payment-System Digital, Fee, Safety, Fairness Standards

Using an enforcement action today against ACTIVE Network, CFPB Director Chopra emphasized that this case epitomized broader Bureau concerns.  These are monitoring use of “digital dark patterns” – i.e., design features that manipulate users into harmful behavior that are profitable for companies.

Treasury’s FIO Seeks Input On Climate-Related Data Collection

Taking further action in response to the President’s Executive Order on Climate-Related Financial Risk (see FSM Report GREEN8), Treasury’s Federal Insurance Office today requested comment on a proposed data collection regarding current and historical underwriting data on homeowners’ insurance from property and casualty insurers to assess climate-related financial risk.

HFSC Republicans Push Yellen to Support IFI Nuclear Energy Funding

In light of recent energy shortages in Europe, Ranking Member McHenry (R-NC) and Rep. Hill (R-AR) sent a letter today to Treasury Secretary Yellen urging her to support the European Bank for Reconstruction and Development and other IFIs financing nuclear energy projects.  They claim that an absence of Western funding has allowed China and Russia to fill the void, especially in developing countries.

Daily101822.pdf

1 09, 2022

DAILY090122

2022-12-20T16:17:52-05:00September 1st, 2022|2- Daily Briefing|

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.

Daily090122.pdf

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