Requirements that apply to emerging payment mechanisms – such as those used in video gaming platforms — are the subject of a proposed interpretive rule issued Friday by the federal consumer financial protection agency.
The proposal looks at such payment vehicles as stablecoins and other digital assets that operate as a medium of exchange or as a means of paying for goods and services under electronic payments regulations, according to the Consumer Financial Protection Bureau (CFPB).
The bureau said, through the proposal, it seeks public comment on financial surveillance concerns and how to apply existing laws to emerging consumer payment mechanisms.
It cited such “emerging forms of digital payments” as those used in digital gaming platforms. “Some video game platforms have proprietary currencies that players can use to purchase and sell items and services,” CFPB said. “The CFPB has also conducted extensive research into the digital payment offerings of Big Tech companies and popular person-to-person payment apps.”
Public comments by the agency are sought on how companies that offer or provide consumer financial products or services collect, use, share, and protect consumers’ personal financial data, including data harvested from consumer payments.
“The Request for Information seeks comments about the effectiveness (or lack thereof) of existing regulations, including the existing model form, privacy notices, and opt-out mechanisms,” the agency said. “The request solicits input on ways to strengthen the existing framework, as well as the types of data the public believes that the CFPB should monitor on a routine basis.”
CFPB said that, through the proposal, it also seeks an interpretive rule on how the Electronic Fund Transfer Act (EFTA) and Regulation E would apply to new and emerging digital payment mechanisms.
“Among other protections, EFTA gives consumers the right to dispute erroneous or fraudulent transactions,” the bureau said. “While courts have issued rulings on specific fact patterns, the proposed interpretive rule provides a framework for determining when EFTA’s protections apply to emerging digital payment mechanisms. The CFPB’s proposed interpretive rule would ensure that consumers can consistently invoke their rights under federal law, while also assisting market participants developing these payment mechanisms.”
CFPB Seeks Input on Digital Payment Privacy and Consumer Protections
Leave a Reply