The FTC alleged that a money transmitter was aware that its system was being used for fraud-induced money transfers, but failed to undertake measures to detect and prevent such transfers, such as terminating agents and locations involved in high levels of fraudulent transactions or imposing more robust ID requirements to receive transfers in one example. The FTC brought an enforcement action in November 2018 against another cash transmitter for neglecting to conform to a previous purchase to implement a thorough fraudulence prevention system that needs it to “promptly investigate, limit, suspend, and terminate high-fraud agents.” in another instance right right right Here once more, the FTC’s enforcement task is targeted from the part of 3rd events in neglecting to avoid the conduct that is illegal of.
In addition, the expansion of cryptocurrency is driving the FTC to do this on consumer security because it pertains to this medium that is relatively new of. Even though the FTCРІР‚в„ўs efforts to date have actually focused mainly on customer training, a recent UDAP enforcement action against a cryptocurrency promoter could be a indication of what exactly is to come. The way it is included four individuals whom allegedly promoted money-making that is deceptive involving cryptocurrencies through web sites, YouTube videos, social media marketing, and seminar telephone phone calls. Exchanges, agents, wallet providers, along with other individuals in cryptocurrency markets need to keep up to date with the FTCРІР‚в„ўs activity in this area because enforcement action might go faster than legislation.
Privacy and information protection. FTC Chairman Joseph Simons told Congress in that “privacy and data security top the list of [its] consumer protection priorities . . july . .” The FTC has taken significantly more than 500 such situations, and over the course of the previous 12 months has taken actions linked to information breaches, privacy violations underneath the Gramm-Leach-Bliley Act, and worldwide privacy frameworks.
The FTC has taken privacy and data protection instances against or perhaps is presently investigating:
a number one ride-sharing business, alleging that the organization did not fairly protected sensitive and painful consumer information kept into the cloud.
A lead-generation company, alleging that the business misled customers into doing applications and offered those applications, including consumersРІР‚в„ў personal information, to unscrupulous parties that are third.
A social-media provider and a major credit-reporting agency for data breaches.
The FTC has taken a few enforcement that is recent associated with the GLBAРІР‚в„ўs privacy conditions, which it had frequently enforced before the creation of this CFPB. Current instances against TaxSlayer (Nov. 2017) and an international online re payment systems business (might 2018) may signal a recommitment to challenging such conduct.
The FTC has also been earnestly enforcing the EU-US Privacy Shield Framework, that was made to facilitate transatlantic transfers of individual information.
even though the Privacy Shield Framework is really a voluntary device, the FTC is in charge of enforcing its conditions for just about any organizations that agree to comply. The FTC brought three cases that are separate the Privacy Shield in November 2018 alone.
A year ago, the FTC established a privacy and information security task force to “better realize the markets for customer information, incentives when it comes to different events in that market, and exactly how to quantify expenses and great things about various actions that the FTC or other people could simply take.” The commission stated it wished to deepen its comprehension of the “economics of privacy,” which include consumer that is studying additionally the relationship between use of customer information and innovation. Moreover it held an Information damage Workshop in December 2017 during which it create a taxonomy for information damage: lack of possibility, financial loss, social detriment, and lack of freedom. Even though the FTC has yet to produce further guidance regarding the forms of damage, its simple acknowledgment that damage goes beyond financial loss implies that it might broaden its evaluation of damage.
