Consumer Group Calls for Action, Regulation of “BigTech” Payment Systems
Consumer Federation of America Says Fairness, Transparency Needed
In October, the Consumer Financial Protection Bureau (CFPB) announced it is examining “BigTech” payment systems to determine consumer protection issues that may require further regulation. Today, the Consumer Federation of America released its comments on the issue.
“We appreciate the CFPB’s careful examination of these largely unchecked BigTech Giants and hope that this inquiry signals to others operating outside of the regulatory system that they will be held accountable for any consumer harm,” said Rachel Gittleman, Financial Services Outreach Manager for Consumer Federation of America.
CFA is calling on the CFPB to pay particular attention to consumer choice, transparency, and the prevalence of fraud in their examination of Amazon, Apple, Facebook, Google, Paypal, and Square.
In announcing the inquiry, the CFPB pointed to the rapidly expanding financial empires being built by the BigTech comepanies under scrutiny.
“Big Tech companies are eagerly expanding their empires to gain greater control and insight into our spending habits,” said CFPB Director Rohit Chopra. “We have ordered them to produce information about their business plans and practices.”
CFA has outlined a number of concerns, including in the areas of diminished competition, consumer harms, and unfair and deceptive practices.
