Bradley partner Jonathan Kolodziej was quoted in American Banker regarding an interpretive rule from the Consumer Financial Protection Bureau’s (CFPB) that specifies firms using analytics to target their consumers may be liable for breaching consumer protection laws.
Kolodziej points out the steps that the CFPB has taken under the current administration to regulate using algorithms and other forms of advanced technology. Potential enforcement action against digital marketing companies is a concern for financial institutions, due to their increased reliance on digital marketing to communicate with consumers. This new interpretive rule states that digital marketers cannot claim an exemption from the Consumer Financial Protection Act.
“It seems likely this is another step on that front," Kolodziej notes. "This will pave the path for the CFPB to enforce the law against digital marketers and, even if they never do take any enforcement actions, it may get some people to proactively change their behavior in response.”
The complete article, " What CFPB's scrutiny of digital marketing means for banks,” was published by American Banker on August 25, 2022. (login required)