Consumer protection: Competition, confusion on Capitol Hill

An imbroglio is brewing on Capitol Hill that will directly impact the financial services industry and spill over into just about every company that directs marketing to consumers, particularly in the digital space. It’s got all the intrigue Washington is known for, and is something corporate counsel need to watch.

Somewhat buried in the Dodd-Frank legislation that revamped regulatory oversight and controls over the financial services industry is a mandate directed to the new Consumer Financial Protection Bureau (still without a director) and the Fed’s stalwart for consumer protection — the Federal Trade Commission — to reach a memorandum of understanding (MOU) on how the two agencies plan to share jurisdiction over unfair and deceptive acts and practices, the bread and butter of the Federal Trade Commission Act. Adding more fascination to whatever coordinated efforts the two federal agencies agree upon is that the CFPB also has jurisdiction over so-called “abusive acts and practices,” something the FTC does not enjoy.