Wilson Sonsini Attorneys Author of Law360 article: “Fintech Compliance Amid Regulatory Pressure on Sensitive Data”

Wilson Sonsini attorneys Jess Cheng, Libby Weingarten and Mara Alioto recently wrote an insightful article Law360 titled “Fintech Compliance Amid Regulatory Pressure on Sensitive Data.” The article examines the implications of the coordinated regulatory efforts of the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) for fintech companies and highlights key considerations for general counsel navigating this compliance landscape.

For fintech companies, adapting to the changing regulatory environment is essential. The article provides practical strategies for how companies can ensure strong consumer protections, protect data privacy and maintain relevant advertising practices. Addressing these areas is key to exercising increased oversight and maintaining consumer confidence.

The article begins with the authors discussing the growing regulatory attention to Big Tech and data-driven financial services. Both the CFPB and FTC are intensifying their efforts to meet the challenges posed by transformative technologies and the digital economy. Under Director Rohit Chopra, the CFPB is focusing more on data practices and large consumer finance technology companies, indicating a noticeable shift toward areas traditionally overseen by the FTC. At the same time, the FTC, led by Chair Lina Khan, is strengthening its oversight of Big Tech’s data practices, especially when it comes to protecting sensitive information such as location, health and financial data.

The article then discusses recent regulatory actions targeting the misuse of biometric data, deceptive advertising, and unfair data collection practices. These strategies reflect a broader trend of increased scrutiny of the use of consumers’ financial data, particularly in the fintech and digital payments sectors.

To read the full article, click here (subscription required).