Reed Smith Client Alerts

On August 10, 2022, the Consumer Financial Protection Bureau (“CFPB”) Director Rohit Chopra delivered remarks on digital marketing and advertising to the 2022 National Association of Attorneys General (“NAAG”) Presidential Summit “Consumer Protection 2.0: Tech Threats and Tools.” During his remarks, Director Chopra introduced the CFPB’s new interpretive rule prohibiting digital marketing services from taking advantage of the “time and space” exemption to the definition of “service provider.”
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"Service providers” are subject to the CFPB’s “unfair, deceptive or abusive acts or practices” authority. Service providers include any person “designing, operating or maintaining” or processing transactions related to consumer financial products or services. However, any person who provides ministerial support services or a “time or space” for advertising a consumer financial product or service is exempt from the definition of service provider. The interpretive rule states that the “ministerial services” language in the exception narrows the “time and space” exemption so that any digital marketing firms that are “materially involved” in the development of content strategy, targeting customers based on their behavior and affecting their purchase behavior may be deemed a service provider.