CFPB action paves the way for crucial privacy, market equity, and consumer protections

WASHINGTON—This morning, the Consumer Financial Protection Bureau (CFPB) ordered Google, Apple, Facebook, Amazon, Square, and PayPal to disclose information about their payment system practices by December 15, 2021. In a statement about the order, CFPB Director Rohit Chopra noted several key risks about Big Tech’s foray into payments, including the potential for financial surveillance, price discrimination, and potential coercion of small businesses.

The orders come on the heels of similarly major action from the Federal Trade Commission, the Justice Department and Congress pushing for critical transparency from Big Tech corporations.

In response, Barry Lynn, executive director of Open Markets Institute, issued the following statement:

“Big Tech knows the value of our financial data, and how to use it to manipulate our actions and pick our pockets. That’s why they are rushing to build entirely new payment systems designed to circumvent existing systems of regulation. Today, the CFPB sent a clear message to Google, Apple, Facebook, Amazon, Square, and PayPal: you cannot operate in the shadows. Payment systems must be designed to make life simple and easy for individuals and businesses, not to provide the means for covert predatory and extortionary practices. We strongly applaud Director Chopra and the rest of the Bureau for taking swift action to illuminate Big Tech’s big move to exploit our money. We look forward to working with the Bureau to continue the vital work of protecting families and businesses from the new wolves of Wall Street.”

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