Compliance Now

Bringing clarity and insight to the consumer protection regulations impacting your business

Apr 04, 2016

Hyperlinked “Terms of Use” on Website Deemed Unenforceable

Recently, a California Court of Appeals held that a “Terms of Use” hyperlink at the bottom of a website was not enough to bind website users to the stated terms, including a mandatory arbitration provision.  In the case, Provide Commerce, Inc.’s website “www.proflowers.com” provided a hyperlink at the bottom of each webpage that, once clicked, [...]

Read More »
Mar 10, 2016

CFPB Unveils First Data Security Case

Last week, the Consumer Financial Protection Bureau (CFPB) announced a settlement with an Iowa based company, Dwolla, Inc., marking the first time the CFPB has penalized a company for lax of data security.  The agency alleged that Dwolla, a payment processor, deceived consumers by claiming to have data security practices that surpassed industry standards when [...]

Read More »
Mar 09, 2016

CFPB Invites Complaints Against Online Marketplace Lenders

Marketplace lenders (also referred to as “peer-to-peer” or “platform” lenders) have become popular methods of consumer lending in the past few years.  In fact, according to a PricewaterhouseCoopers report, peer-to-peer lenders in the United States issued approximately $5.5 billion in loans in 2014.  Given this growing presence in the consumer lending space, it was only [...]

Read More »
Feb 23, 2016

CFPB Finalizes No Action Letter Policy

On February 18th, the CFPB finalized its No Action Letter (“NAL”) Policy as part of its Project Catalyst.  Project Catalyst is a CFPB program designed to reduce the burden on new and innovative consumer financial products. And while that sounds like CFPB would take a liberal approach to issuing NALs, the new NAL Policy demonstrates [...]

Read More »
Feb 16, 2016

FTC Announces its 2016 Rule Review Schedule

The FTC announced that it intends to initiate reviews of, and solicit public comments on, the following rules: (1) Standards for Safeguarding Customer Information, 16 CFR part 314. Agency Contact: David Lincicum, (202) 326-2773, Federal Trade Commission, Bureau of Consumer Protection, Division of Privacy and Identity Protection, 600 Pennsylvania Ave. NW., Washington, DC 20580. (2) CAN-SPAM Rule, 16 [...]

Read More »
Dec 18, 2015

Federal Enforcement Actions Include Record-Breaking FTC Settlement

Significant fines imposed this week by the FTC and CFPB signal the federal government’s growing enforcement of consumer protection regulation. The FTC’s settlement with LifeLock represents the largest fine ever imposed by the agency on an individual company. LifeLock will pay $100 million to settle FTC contempt charges LifeLock has agreed to pay the largest [...]

Read More »
Dec 10, 2015

GLBA Amendment Eliminates Annual Privacy Notice Requirement for Debt Buyers

Monday, December 7th marked a victorious day for Debt Buyers Association International (DBA International) and the debt collection industry as H.R. 601, the “Eliminate Privacy Confusion Act,” was signed into law. This new law amends the Gramm-Leach-Bliley Act (GLBA) to eliminate debt buyers’ current requirement to send an annual privacy notice to consumers whose debt [...]

Read More »
Nov 24, 2015

Audio Beacon Consumer Tracking on the Horizon

Audio beacon tracking is a new form of consumer tracking that is sure to become a controversial topic.  Marketers working in India have already begun to use audio beacons, and it is expected that the technology will eventually emerge as a marketing tool in the United States. How it Works Audio beacon tracking works by [...]

Read More »
Nov 11, 2015

Colorado Announces Late Fees for Charitable Solicitations

The Colorado Secretary of State has announced that beginning on December 17, 2015, charitable solicitation notices that are filed late will be subject to fines.  Notices must now be filed and paid at least 15 days prior to a charitable solicitation campaign commencing.  If notices are filed or paid after 15 days, a $200 late [...]

Read More »
Nov 06, 2015

FTC Announces New Coordinated Enforcement Effort Targeting Debt Collectors

On November 4, 2015, the Federal Trade Commission (FTC) and other law enforcement authorities around the country announced the first coordinated enforcement effort targeting debt collectors. “Operation Collection Protection” encompasses thirty new enforcement actions against debt collectors who are alleged to use unlawful collection tactics such as harassing phone calls and false threats of litigation, [...]

Read More »