The CFPB on Wednesday warned that digital marketing providers must comply with federal consumer finance protections.
The warning came in an interpretive rule that lays out when digital marketing providers for financial firms must comply with federal consumer financial protection law. Digital marketers that are involved in the identification or selection of prospective customers or the selection or placement of content to affect consumer behavior are typically service providers for purposes of the law, according to the CFPB.
Therefore, digital marketers acting as service providers, can be held liable by the CFPB or other law enforcers for committing unfair, deceptive, or abusive acts or practices as well as other consumer financial protection violations.
“When Big Tech firms use sophisticated behavioral targeting techniques to market financial products, they must adhere to federal consumer financial protection laws,” said Rohit Chopra, CFPB director. “Federal and state law enforcers can and should hold these firms accountable if they break the law.”