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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory announcements, recap key enforcement actions, and preview upcoming deadlines and events. We also include links to our articles, blogs, and webinars with more analysis in these areas. We understand that keeping on top of the rapidly evolving regulatory landscape is more important than ever for businesses seeking to offer new and ground-breaking technologies.
Regulatory Announcements
Published: 09 May 2021 09 May 2021
Washington, DC - The Department of Justice, together with the Federal Trade Commission (FTC), announced a $20 million settlement resolving alleged violations of the FTC Act and the Fair Credit Reporting Act (FCRA), including violations of the Red Flags Rule. The settlement includes $15 million in civil penalties, which represents the largest civil penalty ever paid to resolve FCRA violations under the FTC Act.
Vivint Smart Home Inc. sells “smart” home security and monitoring systems, largely via a sales force that sells door-to-door. The complaint alleges that Vivint failed to implement an Identity Theft Prevention Program, allowing its sales representatives to obtain credit reports of unsuspecting consumers without the consumers’ knowledge or consent, and unfairly sold false debt to buyers or debt collectors. According to the complaint, the defendant’s lack of an Identity Theft Prevention Program violated the FTC’s Red Flags Rule, w
Deseret News
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Employees walk through the building during Vivint’s Innovation Center grand opening in Lehi on Oct. 21, 2014. On Thursday, the Federal Trade Commission announced it had reached a $20 million agreement with Vivint Smart Home over abuses of customer credit information.
Jeffrey D. Allred, Deseret News
Vivint Smart Home is on the hook for $20 million in penalties and restitution following a settlement announced Thursday with the Federal Trade Commission over the company’s illegal use of customer credit information.
Under the settlement, Vivint will pay a $15 million civil penalty and an additional $5 million to compensate injured consumers.
Sarbanes-Oxley Act (Sarbox, SOX)
Purpose: Enacted in 2002, the Sarbanes-Oxley Act is designed to protect investors and the public by increasing the accuracy and reliability of corporate disclosures. It was enacted after the high-profile Enron and WorldCom financial scandals of the early 2000s. It is administered by the Securities and Exchange Commission, which publishes SOX rules and requirements defining audit requirements and the records businesses should store and for how long.
To whom it applies: US public company boards, management and public accounting firms.
Key points for CISOs: SOX places requirements around maintaining integrity and availability of financial data, and controls for who has access to that data. Specific rules need to be in place for: