1 week ago
2
The Consumer Financial Protection Bureau (CFPB) is seeking to put Google under federal supervision, a move that could impose the same kinds of monitoring and inspections used on banks, The Washington Post reports.
The CFPB’s concerns are not totally clear and the order may still change, according to the Post, citing two unnamed sources. Both the agency and Google declined to comment on the report. But, plenty could change once President-elect Donald Trump reassumes office in January and puts forward his own pick to lead the agency.
The CFPB was created in the wake of the 2008 financial crisis to protect consumers from unfair practices by financial institutions. While it already inspects more traditional finance businesses like banks, CFPB Director Rohit Chopra has sought to expand the agency’s activities to cover digital payment providers. The tech industry has argued in comments that this would be an overly broad use of the agency’s authority. “There’s no legal basis for this action, so Chopra is trying to invent one out of thin air — all while the clock ticks on his leadership,” Adam Kovacevich, CEO of Google-backed industry group Chamber of Progress, said in a statement about the reported move.
While we don’t yet know what product the CFPB is focused on, Google does offer a digital wallet to store users’ credit cards and make payments with their phones. The CFPB has received hundreds of customer complaints about Google services in recent years about unauthorized charges, according to the Post.
Still, the finance industry seems to expect a significant ramping down of the CFPB’s more aggressive oversight moves once the incoming Trump administration takes over, according to Reuters. Republicans have long expressed skepticism of the agency and Chopra’s authority to expand its scope. The reported move against Google could be one that falls through the cracks of the transition, unless it’s implemented before Inauguration Day.
English (US) ·