On March 3, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint in the U.S. District Court for the Northern District of Illinois against a Chicago-based payment processor for alleged violations of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §5531 and 5536(a)(1)(B), the Consumer Fraud and Abuse Prevention Act (Telemarketing Act), 15 U.S.C. §§ 6101 et seq., and its implementing rule, the Telemarketing Sales Rule (TSR), 16 CFR § 310.3(b). The CFPB specifically alleges that between 2016 and 2018, the company knowingly processed payments for companies that purported to offer online computer technical support services and related products, but in reality would trick consumers into purchasing other antivirus software or services. The CFPB claims that these alleged acts were unfair and deceptive practices and in violation of the TSR. The CFPB’s complaint seeks injunctive relief, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and civil money penalties.
Blog Enforcement Watch March 05, 2021