The Roundup: Risks in Video Gaming Marketplaces, Credit Card Complaints on the Rise, and $62 Million Sent to Deceived Sellers
Welcome to the PerformLine Regulatory Compliance Roundup, home of the latest news, articles, and reports from our industry, curated for you. Let’s get into it.
In this edition: The FDIC final signage and false advertising rule, financial and privacy risks in video gaming marketplaces, credit card complaints surpass bank account gripes, $62 million sent to sellers deceived by false advertising, consumer compliance supervisory highlights, and the consumer response annual report.
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FDIC Final Signage and False Advertising Rule
The FDIC has issued a final rule, effective April 1, 2024, with full compliance by January 1, 2025, revising signage and advertising regulations for banks. The changes aim to update the signage requirements to align with modern banking technologies and clarify the rules regarding false advertising and misuse of the FDIC’s name. The rule mandates that FDIC signage be displayed across all banking channels, including digital platforms, and introduces specific requirements for distinguishing between FDIC-insured deposits and non-deposit products.
Financial and Privacy Risks in Video Gaming Marketplaces
The Consumer Financial Protection Bureau (CFPB) has released a report highlighting significant financial and privacy risks for consumers involved in video gaming marketplaces. As these platforms evolve to include more financial transactions and resemble traditional banking systems, users are exposed to scams and potential theft, and gaming companies may not provide adequate support to users who suffer financial losses. Additionally, there are concerns about the extensive collection of personal and behavioral data by gaming platforms, which could compromise user privacy.
Significant Stat: 1 in 5: Marketing assets monitored in Q1 that were flagged for potential compliance issues. Read more
Credit Card Complaints Surpass Bank Account Gripes
In the past year, the Consumer Financial Protection Bureau (CFPB) received a significant number of complaints about credit cards and banking accounts, highlighting a surge in consumer dissatisfaction. Complaints about credit cards spiked by 38%, with issues frequently involving fraudulent activities and unauthorized transactions. For checking and savings accounts, which also saw a rise in complaints by 33%, issues often involved transactions linked to peer-to-peer payment platforms. The CFPB plans to introduce tools and regulatory measures to address these concerns, including a credit card comparison tool to help mitigate issues with misleading rewards programs.
$62 Million Sent to Sellers Deceived by False Advertising
The Federal Trade Commission (FTC) is distributing nearly $62 million in refunds to sellers who were misled by an online real estate business. The FTC’s action follows a complaint that the company deceived sellers with promises of higher sales prices and lower costs compared to traditional market sales, which was not the case in practice. Most affected sellers ended up making less and paying more than through traditional sales. The FTC aims to rectify these deceptive practices by providing monetary relief to the impacted sellers.
Consumer Compliance Supervisory Highlights
This report by the Federal Deposit Insurance Corporation is meant to provide an overview of consumer compliance issues identified through the FDIC’s supervision of state non-member banks and thrifts in 2023.
Consumer Response Annual Report
This annual report by the Consumer Financial Protection Bureau analyzes over 1.3 million complaints submitted by consumers to the CFPB between January and December 2023.
