On August 10, 2022, Secretary Rohit Chopra spoke on the topic of consumer protection in the digital world at the 2022 National Association of Attorneys General Presidential Summit in Des Moines, Iowa. Director Chopra addressed the digital state of his marketing and advertising in an increasingly digital world.

Chopra began his remarks by discussing the shift in advertising by businesses from traditional methods of buying time and space in newspapers, radio and television to more targeted digital advertising. In this digital ad, a digital sales team “armed with each consumer’s personalized and detailed paperwork” uses a “psychographic profile developed for each user through monitoring the devices and services accessed across the digital world.” serve personalized advertisements to consumers based on Companies are obsessed with using technology to “follow” consumers across the digital world as they seek to generate revenue by persuading consumers to click on them rather than just airing them. It is designed to As a result, Chopra said, “More and more Americans are experiencing the feeling of being digitally stalked by certain advertising content.”

Director Chopra highlighted the power of this personalized digital marketing by addressing former Housing and Urban Development Secretary Ben Carson’s accusations against Facebook for violating the Fair Housing Act. Carson has accused Facebook of helping advertisers limit the audience of their ads and allowing advertisers to target specific groups of people by excluding protected classes.Carson The secretary claimed that Facebook had developed a system that intentionally excluded certain individuals from viewing the same ads. This is because a consumer’s digital profile did not match the “composite consumer” that Facebook determined was most likely to engage with advertising. As director Chopra pointed out, “Facebook’s ad serving system prevented advertisers who wanted to reach a broad audience from doing so.” Even if you try, Facebook’s ad serving system forbids it.

In a meeting with the Attorney General, Chopra said the state’s role in policing illegal activity in consumer financial services and that the Consumer Financial Protection Act “gives states the power to take law enforcement action against covered financial firms.” I reminded them to expressly grant and limit the power of the federal government. A preemptive attack reappears. Note that the law exempts some service providers who play no significant role in the provision of financial products or services far beyond exemption. To address this issue, the CFPB has issued an Interpretive Rule explaining that the “time or space” service provider exemption generally does not apply to digital marketing services offered by major platforms. He said the law could be enforced by state attorneys general.

Chopra concluded his remarks by saying that advances in technology “make it difficult to rush to seize our sensitive financial data or force tech giants to circumvent existing laws that other companies must comply with.” It should serve our economic and social progress rather than encourage it.” Noting the latest initiatives the CFPB has taken to prepare for the future of consumer finance and looking at its plans for the future, Secretary Chopra concluded his remarks by saying: Become a partner in rooting out lawbreakers and keeping markets fair for consumers and honest businesses. ”

You can find a full copy of his remarks here.

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