On August 10, the CFPB announced that digital marketing providers involved in identifying or selecting prospective customers or selecting or placing content to influence consumer engagement, including purchasing or hiring behavior, are subject to CFPB jurisdiction. issued an interpretation rule to indicate. The rule ostensibly clarifies the scope of companies that are “service providers” under the CFPA to include digital marketing providers, thereby giving those companies the authority of his CFPB to ban his UDAAP. subject to

The CFPB’s jurisdiction generally applies to “subjects,” or “any person engaged in the provision or provision of consumer financial products or services.” The Department’s jurisdiction also extends to “service providers” who provide “essential services” to Covered Persons in connection with the provision of consumer financial products or services. provided, however, that the term “service provider” shall not include (i) “support or similar services of the type generally provided to businesses”; or (ii) “time or space for the advertising of consumer financial products”; It does not include those that provide any of the or services in print, newspaper or electronic media. ”

Under the Interpretive Rules, digital marketing providers are involved in the development of content strategies, and to the extent that they identify or select prospective customers or select or place content to facilitate consumer engagement with advertising, service providers It is said that The CFPB also said Digital his marketers engaged in targeting and delivering this type of advertising, rather than simply providing ad space and time, do not fall under the “time or space” exception.

The rule also explains that “states and other consumer protection enforcers can sue digital marketers who may be responsible for UDAAP.” In a related statement, CFPB director Rohit Chopra said:[w]If a big tech company sells financial products using sophisticated behavioral targeting techniques, it must comply with the Federal Consumer Financial Protection Act.

Practice: The rule would require third-party provision of data, including a number of marketing strategy firms that could be subject to scrutiny, especially if the CFPB considers the data to be a conduit for discrimination, especially if the CFPB recently viewed the UDAAP. important to users (see below). See previous blog post here). In addition, the CFPB has regularly held service providers liable for knowingly or recklessly providing “substantial assistance” to companies that violate the Consumer Financial Services Act. Any such material assistance shall be deemed to be in violation of the law to the same extent as the person to whom such assistance was provided. Within the context of his digital marketing provider, the use of substantive assistance enforcement mechanisms reappears as a common method for her CFPB to track parties who may not appear to have directly engaged in illegal activity. may float.

The content of this article is intended to provide a general guide on the subject. You should seek professional advice for your particular situation.