Christopher Olsen

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On December 3, 2024, the Consumer Financial Protection Bureau (CFPB) announced its highly anticipated and controversial proposed rule that primarily aims to bring data brokers within the scope of the Fair Credit Reporting Act (FCRA). Data brokers have long argued that they do not furnish “consumer reports,” and thus do not constitute “consumer reporting agencies” subject to the FCRA’s obligations. The CFPB catalogues the harms that have resulted from such a stance; namely, risks to national security, financial well-being, and personal safety when data brokers sell information to countries of concern, scammers, or stalkers. The proposed rule seeks to cover data brokers by clarifying key provisions within the definition of “consumer report.” The proposed rule also aims to shore up consumer protections under the FCRA by interpreting the definition of “consumer reporting agency” more broadly and permissible purposes for furnishing consumer reports more narrowly, such as consumer consent and legitimate business needs. The CFPB seeks public comment on the proposed rule, which must be received on or before March 3, 2025.Continue Reading CFPB Issues Proposed Rule to Cover Data Brokers Under the Fair Credit Reporting Act

On December 2, 2024, the Federal Trade Commission (FTC) announced it had filed a complaint against GOAT, an online retailer of sneakers, apparel, and accessories. In the complaint, the FTC alleged, among other things, that GOAT failed to honor its “Buyer Protection” policy for consumers who received deficient products. The FTC also alleged that GOAT failed to offer consumers whose products were delayed beyond the promised delivery period a clear and conspicuous way to consent to the delay or cancel the order in exchange for a refund. Furthermore, the FTC alleged that consumers were forced to repeatedly contact customer service for relief, and often received inadequate refunds.Continue Reading FTC Files Consumer Protection Complaint Against GOAT

In recent months, politicians and regulators across a number of jurisdictions have called on operators of online platforms to take seriously their legal obligations to promote a safe online environment. The safety of children online has continued to dominate this conversation, with a recent joint UK-U.S. statement (Statement) declaring that online platforms should “go further and faster in their efforts to protect children.”

This alert sets out the regulatory focus areas of the European Commission (EC), the Irish Coimisiún na Meán (CNAM), and the UK’s online safety regulator Ofcom.Continue Reading Regulators in Europe Signal Increased Scrutiny of Online Platforms

California’s 2024 legislative session has been marked with exciting developments and a clear focus on setting the rules of the road for artificial intelligence (AI), with some measures becoming law and others stalling out along the way. Last month, Governor Newsom signed 17 bills regulating AI in the Golden State. Notably, Governor Newsom vetoed SB 1047, which would have imposed safety requirements on developers of large models to avoid certain harms. In vetoing the bill, Governor Newsom noted that it was not comprehensive or precise enough, improperly focused on large models even though small ones could present similar risks, and did not take into account whether an Al system is deployed in high-risk environments, involves critical decision-making, or uses sensitive data. Newsom’s veto also represents a big win for the numerous industry members, politicians, and academics who lobbied against the bill, arguing that its passage would stifle innovation in the space. Nevertheless, the AI bills Newsom did sign are expected to have wide-ranging impacts on the AI industry. A summary of those bills is below.Continue Reading Governor Newsom Signs (and Vetoes) Major California AI Legislation

On October 1, 2024, the Maryland Age-Appropriate Design Code (Maryland AADC) became effective. The Maryland AADC introduces onerous new compliance requirements on companies that are reasonably likely to be accessed by minors under the age of 18.Continue Reading Maryland Age-Appropriate Design Code Effective October 1, 2024

On June 7, 2023, the New York legislature passed the Stop Addictive Feeds Exploitation (SAFE) for Kids Act (SAFE Act or the Act) and the New York Child Data Protection Act (CDPA), both aimed at protecting children online. The SAFE Act prohibits covered social media companies from providing individuals under 18 (minors) with “addictive feeds” (as defined in the SAFE Act) and overnight notifications, absent parental consent. The CDPA is intended to complement the SAFE Act by limiting the extent to which providers of internet websites, online and mobile applications, and connected devices (service) can collect, use, share, and sell minors’ personal data. If signed into law by Governor Hochul, the SAFE Act and CDPA would create new, onerous requirements for entities doing business in New York. The key provisions of each act are highlighted below.Continue Reading New York Legislature Passes a Pair of Bills to Protect Children’s Privacy Online