Washington, DC — On Thursday, the Consumer Financial Protection Bureau announced a final rule that gives the agency authority to supervise major payment apps like Venmo, Apple Pay and Google Wallet just like their authority to proactively monitor companies that issue traditional credit cards and bank accounts. These payment apps, many of which are owned by major tech giants, have become a go-to way for many Americans to pay for their everyday needs. With this new rule, the CFPB will be able to monitor these companies the same way they monitor banks and credit unions to ensure that they abide by federal rules mandating data security standards, disputes for fraudulent payments, and more.
The following is a statement from Demand Progress Education Fund Corporate Power Director Emily Peterson-Cassin:
“Big Tech companies want great power but none of the responsibility that comes with it. That’s why we applaud the CFPB for taking this needed step towards accountability. Financial institutions offering debit and credit cards are carefully monitored to ensure that they treat their customers fairly, as required by law. Obviously, companies that own payment apps should be watched in the same way. The fact that companies like Amazon, Apple and Google have resisted this commonsense rule shows that once again, Big Tech wants free rein to break rules and consolidate their market dominance. Thankfully, we have agencies like the CFPB standing up for the rights of American consumers.”