The Consumer Financial Protection Bureau (CFPB) has issued an interpretive rule detailing when financial firm digital marketing providers must comply with federal consumer financial protection law.
“When Big Tech firms use sophisticated behavioral targeting techniques to market financial products, they must adhere to federal consumer financial protection laws,” CFPB Director Rohit Chopra said. “Federal and state law enforcers can and should hold these firms accountable if they break the law.”
Digital marketers executing the role of service providers can be held liable by the CFPB or other law enforcers for committing unfair, deceptive or abusive acts or practices, in addition to other consumer financial protection violations.
When digital marketing providers extend beyond traditional advertising, they are typically covered by the Consumer Financial Protection Act. The measure contains an exception for companies solely providing time or space for advertising a consumer financial product or service through print, newspaper or electronic media.
The CFPB maintains that the exception does not cover firms materially involved in developing a content strategy.
The CFPB’s interpretive rule, officials indicated, explains that digital marketers who provide material services to financial firms and other consumer protection enforcers can sue digital marketers to stop consumer financial protection law violations.