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Tech Company Payment Systems Notice Overview:
- Who: The Consumer Financial Protection Bureau is asking Facebook, Amazon, Google, Apple, PayPal, Square, Alipay, and WeChat Pay to hand over information that will give it insight into its payment-related systems.
- Why: The bureau wants more information about how tech companies are protecting consumers and handling their data while also making sure they aren’t engaging in anti-competitive behavior.
- Where: The Consumer Financial Protection Bureau is responsible for consumer protection in the US financial sector.
The Consumer Financial Protection Bureau (CFPB) wants more information about payment-related systems and products provided to consumers by big tech companies like Facebook, Amazon, and Google.
The CFPB sent a notice to Facebook, Google, Amazon, Apple, PayPal, and Square — in addition to Chinese tech companies Alipay and WeChat Pay — on Oct. 21 as part of a consumer protection sweep the bureau is conducting.
The government agency is giving the tech companies slightly under two months to hand over information that will give it insight into their payment practices and if they are doing enough to protect consumers.
Tech companies have begun implementing their own payment systems as a way to necessitate easier cash transactions for consumers in the wake of an increased shift to e-commerce, according to the CFPB.
It’s ‘Unclear’ if Tech Companies like Facebook, Amazon, and Google are Misusing Consumer Data from Their Embedded Payment Systems
The potential downside, however, the CFPB says, is that it is still unclear if tech companies are misusing data they are collecting from consumers — such as spending habits and purchasing behaviors — or if they are doing all they can to protect consumers from fraud or other payment errors.
“Knowing what we spend our money on is a valuable source of data on consumer behavior,” CFPB Director Rohit Chopra said in a statement. “This data can be monetized by companies that seek to profit from behavioral targeting, particularly around advertising and e-commerce.”
The CFPB is also concerned that the companies may be working to limit consumer choice by implementing strategies that could be considered anti-competitive.
Chopra, in his statement, asked multiple questions related to the potential for anti-competitive practices, including what reasons a tech company would have for disqualifying or delisting a business, and if small businesses would feel coerced to participate.
The agency says it is looking at the Chinese companies because they provide an example of what can happen when you operate in a market where “consumers have little choice but to use these apps and little market power to shape how their data is used.”
Class action lawsuits often result after CFPB investigation. The organization filed a class action lawsuit last month against LendUp Loans LLC, alleging the lender did not fulfill an agreement to offer repeat borrowers better loan terms.
Do you believe big tech companies like Facebook, Amazon and Google are acting entirely lawful with their payment-related systems? Let us know in the comments!
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31 thoughts onConsumer Financial Protection Bureau Wants More Info on Facebook, Amazon and Google’s Payment-related Systems and Products
I did a deal threw PayPal it was for $8000 got half of the money then guy said i sent Bricks sent it back paypal would not look at my side gave him the money back and said i owed them over $4000 because i got half of it but i was out what i sent him so the guy got $8000 in phones for free
I bought 3 pair of boots on Facebook
Paid
They never came
I tried to file a claim but instead my Facebook account was flagged as suspicious
Facebook don’t cheCk ✔️ fake company to see if they real a brought a coat never receive it .then went to my account again get more money I ‘ll report them. To Facebook and lot of FB. Got ripped off Off to and reported them in Facebook did nothing.
I have sold books on Amazon since Feb 2021 and have yet to receive a check from them. Please add me
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