New Privacy Protections For Digital Payments Proposed By CFPB
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The Consumer Financial Protection Bureau (CFPB) announced that it is looking for public input to improve privacy and consumer protections in digital payments. The agency said it wants to ensure people are safe from harmful surveillance and errors when they use digital payment platforms, especially those from large tech companies.
According to the update, the CFPB is asking the public how to apply current financial privacy laws to stop intrusive data collection. It also requests comments on how personalized pricing may affect consumers.
The CFPB Introduces A New Rule About Digital Payments
The CFPB shared details about a new proposed rule on how the Electronic Fund Transfer Act applies to digital payments. This law gives consumers protection against fraud and mistakes.
The rule would include newer payment systems like those from large tech companies, gaming platforms, and stablecoins, which are digital currencies tied to the value of a country’s money, like the U.S. dollar.
CFPB Director Rohit Chopra said people need to feel secure when they use new digital payment methods for daily expenses. Chopra added that the CFPB aims to apply old consumer protections to the latest technology so people can avoid risks.
The agency explained that many payment platforms collect and use more data than needed for a transaction. This data includes details about a person’s location, social networks, and browsing history. The CFPB said companies might use this data to charge people different prices based on personal details.
The CFPB wants people to give their opinions about privacy rules and how to improve features like opt-out notices and forms. The agency said it hopes this feedback will help create stronger protections for people using digital payment services.
According to the update, the agency’s new proposed rule also looks at how to apply consumer rights to emerging digital payments. These rights include the ability to dispute errors or fraud. The rule aims to ensure that people can access their protections under federal law while also guiding companies that develop payment systems.
CFPB Tackles Privacy Challenges With New Steps
The CFPB said it is taking more steps to fix privacy problems. It introduced new rules so tech companies offering payment services follow the law. It also created rules to help people control their financial data and manage how data brokers use private information.
According to the update, the CFPB explained in a report that many state privacy laws do not include financial institutions. It said states need to improve protections when federal regulations are not strong enough.
The regulator is also asking video gamers and parents to share their thoughts on how gaming platforms handle in-game payments. The agency hopes to use this feedback to improve protections for consumers in all types of digital transactions.
