“Big Tech” Put on Notice for Potential Consumer Protection Violations
Google, Meta may be violating equal credit laws with their marketing
Jason Mikula at Fintech Business Weekly reports on the Consumer Financial Protection Bureau’s (CFPB) notice to Big Tech companies about potential liability under various consumer protection laws.
The CFPB has put “Big Tech” on notice that they may be considered service providers to financial services companies that use their advertising platforms and thus “can be held liable by the CFPB or other law enforcers for committing unfair, deceptive, or abusive acts or practices as well as other consumer financial protection violations.”
The agency argues that targeting and optimization algorithms common in digital marketing constitute a material service to financial advertisers (emphasis added):
“Digital marketing providers are typically materially involved in the development of content strategy when they identify or select prospective customers or select or place content in order to encourage consumer engagement with advertising.
Digital marketers engaged in this type of ad targeting and delivery are not merely providing ad space and time, and they do not qualify under the ‘time or space’ exception.”
