Consumer Financial Protection Bureau 2024 Press release and Circular

On the 29th of February 2024 the Consumer Financial Protection Bureau (CFPB) issued a circular explaining how comparison-shopping tools can violate the Consumer Financial Protection Act (CFPA) by steering consumers to certain products or lenders. The circular highlights how these tools use algorithms to prioritize recommendations and emphasizes that financial agreements resulting in preferential treatments are considered abusive, because consumers typically rely on the assumption these providers will act in their best interests. The CFPB warns that dark patterns that create the illusion of competition, violate consumer financial protection laws.