The expanding use of mobile technologies, cloud computing, and the Internet of Things has greatly increased the amount of available consumer data. The ability to efficiently process this information has the potential to provide countless consumer benefits. Nevertheless, companies must navigate an ever-expanding patchwork of domestic and foreign laws and uncertainty regarding the application of existing laws to new technologies. In addition, although regulators have commended the advancement and development of new consumer lending technologies, they also have warned that these new tools “carry the risk of disparate impact in credit outcomes and the potential for fair lending violations[.]” For companies under the authority of the Consumer Financial Protection Bureau (CFPB), the CFPB’s no-action letter (NAL) program offers a potential tool to help navigate these challenges. As described in the following article, however, the tool is not without risk for companies seeking regulatory guidance.
Continue Reading Starting Up the CFPB’s No-Action Letter Program

Last year, the U.S. Supreme Court issued a decision in Spokeo Inc. v. Robins, holding that a plaintiff bears the burden of establishing Article III standing by alleging an injury in fact that is concrete, particularized, and actual or imminent.1 The Court stated that “Article III standing requires a concrete injury even in the context of a statutory violation,” and that a plaintiff cannot “allege a bare procedural violation, divorced from any concrete harm, and satisfy the injury in fact requirement of Article III.”2

Following Spokeo, courts across the nation have been grappling with how to interpret and apply the decision. In particular, a jurisdictional divide has arisen regarding courts’ interpretations of the standing issue in Fair Credit Reporting Act (FCRA) consumer protection class actions. Courts in the Seventh and Eighth Circuits, for example, have tended to find no standing in FCRA cases.3 Conversely, the Ninth Circuit has leaned toward plaintiff-friendly findings of standing in FCRA cases.4 Thus, the post-Spokeo FCRA class action jurisprudence demonstrates the criticality of forum in determining a defendant’s likelihood of success in challenging standing.Continue Reading Post-Spokeo Jurisdictional Divide Continues as Northern District of California Rejects TransUnion’s Lack of Standing Argument

On October 3, 2017, the High Court of Ireland issued its decision in Data Protection Commissioner vs Facebook and Schrems concerning the validity of the EU Standard Contractual Clauses (SCCs)—a mechanism used by a very
Continue Reading European Court of Justice to Rule on Validity of Standard Contractual Clauses

On September 5, 2017, the Federal Trade Commission (FTC) announced that it and 32 state attorneys general had settled charges with Lenovo regarding the company’s practice of pre-loading software on its laptops that compromised consumers’
Continue Reading Lenovo Settles FTC Charges Regarding Pre-Installed Software That Compromised Consumers’ Cybersecurity and Privacy