In the Information Age, regulators spend a tremendous amount
of time addressing issues dealing with how consumer data is used and
disseminated across multiple industries. The following roundup of recent
headlines reflects these efforts and the areas where regulators see violations
of federal laws intended to guard against data misuse:
CFPB commends states on measures barring medical bills
from credit reports
The Consumer Financial Protection Bureau (CFPB) has
submitted letters to members of at least two state legislatures in as many
months, praising their work on bills aimed at prohibiting credit reporting
agencies from including medical bills on consumer credit reports. The CFPB
wrote to legislators in Connecticut
in April and California
in March, commending them for being proactive in working to protect consumers
against “unscrupulous” credit reporting practices, including enacting laws
that go further than or reinforce federal protections. In one letter, the
bureau pointed to its research indicating “[c]onsumers frequently incur
medical bills in unique circumstances that differ from other forms of credit
extension, and CFPB research has found that medical debt is less predictive of
future consumer credit performance than other tradelines.”
FTC takes actions prohibiting certain companies sharing,
selling, disclosing data
The Federal Trade Commission (FTC) recently announced
actions prohibiting specific companies from engaging in the unauthorized use or
distribution of consumer data. The agency ordered
telehealth company Cerebral, Inc., to pay $7 million for using consumer data
for advertising purposes and to restrict how it uses or discloses sensitive
consumer data, as well as offer consumers a simple way to cancel services. The FTC
also finalized
an order prohibiting data broker X-Mode and its successor Outlogic from
sharing or selling any sensitive location data to settle allegations the
company sold precise location data that could be used to track people’s visits
to sensitive locations such as medical and reproductive health clinics and
places of worship.
SEC charges five firms for violating Marketing Rule
The Securities and Exchange Commission (SEC) recently
announced settlement agreements with five registered investment advisers charged
with Marketing Rule violations. According to the SEC’s findings, the firms
advertised hypothetical performance to the general public via their websites
without adopting and implementing policies and procedures designed to
reasonably ensure the relevance of these hypothetical performance metrics to
the likely financial situation and investment objectives of each advertisement’s
intended audience, as required by the Marketing Rule. The firms have
agreed to settle the SEC’s charges and to pay $200,000 in combined penalties. The
firms are: GeaSphere LLC; Bradesco Global Advisors Inc.; Credicorp Capital
Advisors LLC; InSight Securities Inc.; and Monex Asset Management Inc. Learn
more here.
GAO seeks five members for Tribal and Indigenous Advisory
Council
The U.S. Government Accountability Office (GAO) is
advertising for nominations to fill five positions on its Tribal and
Indigenous Advisory Council. Formed in 2022, the council provides insights and
recommendations and helps guide the GAO’s activities on critical issues
affecting Tribal Nations and their citizens. The council is comprised of 16
members representing Tribal Nations, Alaska Native Corporations, Native
Hawaiian communities, and state-recognized tribes that can provide guidance on
vital and emerging issues affecting their respective constituents and input on
GAO’s work on federal programs that serve their communities. Nominations must
be submitted to [email protected] no
later than May 31. The positions will become effective in September. More
information is available here.