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CFPB Interpretive Rule Issued for Financial Firms’ Digital Marketers

CFPB Interpretive Rule The CFPB interpretive rule would subject digital marketers to the Consumer Financial Protection Act for certain advertisements. While it does not mention debt collection, this rule follows the bureau’s recent approach of publishing rules without stakeholder input.

08/10/2022 2:30 P.M.

2 minute read

The Consumer Financial Protection Bureau has issued an interpretive rule detailing when digital marketing providers for financial firms must comply with federal consumer financial protection law.

When digital marketing providers go beyond traditional advertising, they are typically covered by the Consumer Financial Protection Act (CFPA) under the definition of service providers, according to a news release from the CFPB. This means they could also be subject to the law’s consumer protections.

The CFPA contains an exception for companies that solely provide time or space for an advertisement for a consumer financial product or service through print, newspaper or electronic media. However, the CFPB stated today that the exception does not cover firms that are materially involved in the development of content strategy.

The interpretive rule does not mention debt collection; however, financial services companies should review it for any requirements for work with digital marketers. Additionally, as an interpretive rule and similar to the several other interpretive rules issued this year, it is exempt from the notice-and-comment rulemaking requirements of the Administrative Procedure Act, according to the CFPB.

The bureau has also determined that this interpretive rule does not impose any new or revise any existing recordkeeping, reporting, or disclosure requirements on covered entities or members of the public that would be collections of information requiring approval by the Office of Management and Budget under the Paperwork Reduction Act.

Pursuant to the Congressional Review Act, the bureau will submit a report containing this interpretive rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to the rule’s published effective date in the Federal Register.

CFPB Director Rohit Chopra discussed the interpretive rule at the 2022 National Association of Attorneys General Presidential Summit Wednesday.

“Our interpretive rule complements many other initiatives the CFPB is taking to prepare for the future of consumer finance, as tech firms expand their reach,” Chopra said. “We are also working on new rules using a long unused authority to give consumers more control of their financial data. We are also examining how certain activities of technology companies might constitute consumer reporting under the Fair Credit Reporting Act.”

ACA Insights

In line with its process with these recent interpretive rules and advisory opinions, whether finding solutions to problems or creating new regulatory measures, the bureau’s actions need to be based on current data and results from working with all stakeholders.

If you have executive leadership updates or other member news to share with ACA, contact our communications department at [email protected]. View our publications page for more information and our news submission guidelines here.

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