Empowering Consumer Data Control, FTC “Click-to-Cancel” Rule, and Deceptive Lending Lawsuit

Introduction:

Welcome to Fair Monday! We know Mondays can be a bit rough, so we created Fair Monday to bring you weekly insights and resources on dark patterns and digital fairness. Each Monday, we share updates on the latest developments, helping you stay informed and empowered to create a fairer, more transparent digital space.

This Week's Highlights:

1. CFPB Introduces Rule to Enhance Consumer Control Over Financial Data
   The Consumer Financial Protection Bureau (CFPB) unveiled a new rule empowering consumers to manage their financial data. Key provisions include:
   ➡ Banks and financial institutions must transfer consumer data to other providers upon request, free of charge.
   ➡ Prohibiting dark patterns that complicate data access revocation or mislead users.
   ➡ Restricting data usage for unauthorized purposes, like targeted ads, without explicit consent.
   ➡ Encouraging competition by enabling consumers to securely transfer data for better financial terms and pay-by-bank payment options.Read more
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2. Industry Groups Sue FTC Over “Click-to-Cancel” Rule
   Three major industry groups, including the Internet & Television Association, Interactive Advertising Bureau, and Electronic Security Association, filed a lawsuit against the FTC. Key concerns:
   ➡ The rule simplifies subscription cancellations and targets automatic renewals.
   ➡ Industry groups argue it unfairly labels all auto-renewal practices as “deceptive” unless companies meet strict requirements.
   ➡ They claim the rule overreaches by regulating contract terms across industries and are seeking judicial intervention to block its implementation.Read more‍
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3. California Class Action Lawsuit Against SoLo Funds
   A class action lawsuit filed in California accuses SoLo Funds of deceptive lending practices. Allegations include:
   ➡ Misleading consumers with hidden interest costs disguised as "tips" and "donations."
   ➡ Using dark patterns to encourage borrowers to pay extra fees.
   ➡ Implementing a “social credit” scoring system without adequate safeguards, raising ethical concerns.
   This lawsuit follows a CFPB investigation into SoLo’s alleged lack of transparency in loan costs. Read more

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Conclusion:

This week’s updates, from empowering consumers with greater control over their financial data to controversies surrounding the FTC’s “Click-to-Cancel” rule and deceptive lending allegations, underline the global focus on transparency, fairness, and user empowerment.

At Fairpatterns, we strive to help organizations eliminate dark patterns, enhance ethical design, and build trust with their users in an evolving regulatory environment.

Let’s keep driving digital fairness forward. Have a fantastic week with Fair Monday!