On January 10, 2025, the CFPB announced that it is seeking public input on strengthening privacy protections and preventing harmful surveillance in digital payments, particularly those offered through large technology platforms. In addition, the Bureau requested comment on a proposed interpretive rule outlining how the Electronic Fund Transfer Act (EFTA) applies to new types of digital payment mechanisms.
First, the CFPB is requesting public comment to better understand how companies that offer or provide consumer financial products or services collect, use, share, and protect consumers’ personal financial data, including data collected from consumer payments. The CFPB’s research found that some of these companies’ payment mechanisms collect and use data in excess of what is needed to initiate and complete a transaction. Recent studies noted that existing frameworks for financial data privacy protections, such as disclosures and opt-out requirements, may not fully address the challenges posed by modern data surveillance. The CFPB’s Request for Information seeks comments on the effectiveness of current regulations, including model forms, privacy notices, and opt-out mechanisms. It invites input on how to strengthen the existing framework and which data the public thinks the CFPB should routinely monitor. Comments will be accepted until April 11, 2025.
Secondly, the CFPB is also requesting comments on its proposed interpretive rule on how the EFTA and Regulation E would apply to new and emerging digital payment mechanisms. These mechanisms include those currently offered through large technology companies and video gaming platforms, as well as stablecoins and other digital currencies that are not widely used today in consumer transactions. According to the CFPB, the proposed interpretive rule would ensure that consumers can consistently invoke their rights under federal law, while also assisting market participants in developing these payment mechanisms. Comments on the interpretive rule will be accepted until March 31, 2025.
Read the CFPB’s press release here.
The Request for Information can be found here.
See the proposed interpretive rule here.