Financial Reform

FTC releases major report recommending privacy reforms

By | Ed Mierzwinski
Consumer Program Director

The U.S. Federal Trade Commission (FTC) today released a major report on consumer privacy. From FTC -- "In the report, “Protecting Consumer Privacy in an Era of Rapid Change: A Proposed Framework for Businesses and Policymakers,” the FTC also recommends that Congress consider enacting general privacy legislation, data security and breach notification legislation, and data broker legislation."

News Release | U.S. PIRG | Financial Reform

Senate Rolls Back Investor Protections

Statement of Edmund Mierzwinski, U.S. PIRG Consumer Program Director on Senate Passage of the JOBS Act (Excerpt) "Today, the Senate joined the House in passing the so-called JOBS Act, legislation that will roll back investor protections, leaving senior citizens and other small investors at the mercy of the next Enron collapse, the next Gordon Gecko and the next-generation boiler room operators using social media to pitch toxic investments."

Investor rights on chopping block in U.S. Senate (updated)

By | Ed Mierzwinski
Consumer Program Director

(See updates (click Keep Reading): Today, the U.S. Senate will consider the House-passed "JOBS" Act, which weakens investor protections -- many passed after the Internet bubble burst and Enron's follow-on bankruptcy destroyed jobs and retirement savings. Its supporters claim the bill to make it easier for small companies to navigate SEC rules and  thereby promote small company growth (which theoretically creates, you guessed it, jobs), has already been thoroughly vetted. Yet, the bill is opposed by some of the Senate's most thoughtful investor champions and opposed by U.S. PIRG and numerous consumer and investor organizations. We support a substitute to be offered by Senators Jack Reed (RI), Mary Landrieu (LA) and Carl Levin (MI) because it protects investors. But if the substitute fails to get 60 votes, the JOBS Act will be non-amendable under an ill-advised special fast-track system set up to speed it through.

You may not remember any pre-2008 scandals -- dot.com bubble?; Enron scandal? --  since they are so yesterday's news. Don't worry. The House and Senate don't remember, either. If the Senate has its way with quick passage of the misnamed already-House-passed Jobs Act, -- better named by the New York Times columnist Gail Collins as the "Just Open Bucket Shops Act" -- conflicted analysts will make stuff up again, government watchdogs like the SEC and PCAOB will be chained, and small and novice investors will be looking at "crowd-funded websites" from good guys and bad guys, too, including often-fraudulent Chinese IPOs. Things are so bad that the Senate's leading investor champions aren't even sure they can get enough votes to modify the proposal -- let alone block it -- even with a compromise alternative (letter from PIRG-backed AFR/CFA). Only in Washington.

A Federal Trade Commission (FTC) staff report confirms what we've known all along: The big credit bureaus pressure identity theft victims into buying overpriced, underperforming credit monitoring subscription packages.

Consumer fraud summit today will be webcast

By | Ed Mierzwinski
Consumer Program Director

UPDATE: LINK TO C-SPAN WEBCAST ARCHIVE (My PANEL here and entire event here.)

In times of financial calamity, fraudsters come out to take your last dollar. This afternoon U.S. Attorney General Eric Holder will host a consumer financial fraud summit (agenda) at Georgetown Law School near Union Station bringing together enforcers from the DOJ, FTC, state agencies and consumer groups. I'll be on a panel discussing business opportunity frauds. Other panels will be on elder fraud and tax scams. The event is free and open to the public and will be webcast.

As web giants amass more and more information about consumers for behavioral targeting and even "social discrimination" -- which can include differential pricing for the same product or the use of web tracking data and falsely-flagged websites to promote certain brandname drug use -- the White House has called for a privacy bill of rights. Companies and powerful industry lobbies seeking to keep those rights weak have rolled out their own "Do Not Track Sometimes" button. Meanwhile bi-partisan groups of Congressional privacy hawks and, now, state attorneys general have demanded information from Google about its slippery, ever-changing privacy policies and whether Googleis in compliance with settlements it has already agreed to.

At a news conference in NYC today, Director Richard Cordray of the new Consumer Financial Protection Bureau (CFPB) will announce a major investigation of bank overdraft fee practices and propose a model "penalty box" disclosure to appear on bank statements. The investigation could end the $39 latte-- $4 bucks for the coffee, $35 for the debit card overdraft fee.

Consumer news update, some stories I've been following

By | Ed Mierzwinski
Consumer Program Director

Just a summary of some of what I think are the important consumer news stories of the last week or so, in case you missed any of them.

News Release | U.S. PIRG | Financial Reform

U.S. PIRG Applauds CFPB Proposal To Regulate Biggest Credit Bureaus

“Last summer over 10,000 PIRG members submitted comments to the Consumer Financial Protection Bureau (CFPB) urging strict regulation of credit bureaus and credit scoring firms. We applaud the CFPB for its proposal today to subject the nation’s largest credit bureaus and credit scoring firms to full scrutiny as “larger participants” (CFPB pdf) in the financial marketplace."

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