FTC sends annual report to CFPB recapping activities regarding financial acts
Last week, the Federal Trade Commission provided its annual report to the Consumer Financial Protection Bureau on its enforcement and related activities in 2023 on the Truth in Lending Act (TILA), Consumer Leasing Act (CLA), and Electronic Fund Transfer Act (EFTA).
And the three main segments of that report — also provided to the Federal Reserve Board — recapped a trio of elements familiar to providers of auto financing, including:
Rulemaking
The report highlighted that the FTC’s Combatting Auto Retail Scams (CARS) Rule is designed to put an end to “bait-and-switch tactics and hidden fees used by unscrupulous car dealers.” The rule also includes “clear” protections for military members, according to the regulator.
The report noted that the rule was set to go into effect July 30, but the FTC issued an order postponing the rule’s effective date pending judicial review.
The report also noted the FTC’s ongoing litigation against dealer marketing firm Traffic Jam Events, and refund payments sent to consumers in 2023 in the Napleton Auto case.
Junk fees
The report highlighted the FTC’s proposed rule regarding “junk fees,” which officials said would prohibit “hidden and bogus” fees, ensure consumers know how much they are paying and what they are getting, and help spur companies to compete.
Negative options
The report also mentioned the FTC’s proposed updates to the Negative Option rule that include a “click to cancel” provision requiring sellers to make it as easy for consumers to cancel their enrollment as it was to sign up.
The report recapped additional refund payments sent to consumers in 2023 because of the FTC’s case against Triangle Media Corp.
The report also highlighted the agency’s Military Task Force, which comprises a cross-section of FTC representatives and focuses on various initiatives to assist military consumers, and other FTC work involving military lending, including with the Department of Defense.
Officials also explained the FTC’s consumer and business education efforts on truth in lending, consumer leasing, and electronic fund transfer issues.
The FTC made the report available via this website.