Notice and Request for Comment Regarding the CFPB's Inquiry Into Big Tech Payment Platforms, 67023-67024 [2022-24214]

Download as PDF khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 87, No. 214 / Monday, November 7, 2022 / Notices Abstract: Commission Rule 140.735–6 governs the practice before the Commission of former members and employees of the Commission and is intended to ensure that the Commission is aware of any existing conflict of interest. The rule, at 17 CFR 140.735– 6(e), requires former members and employees who are employed or retained to represent any person before the Commission within two years of their separation from the CFTC, to file a brief written statement with the Commission’s Office of the General Counsel. The proposed rule was promulgated pursuant to the Commission’s rulemaking authority contained in Section 8a(5) of the Commodity Exchange Act, 7 U.S.C. 12a(5) (1994), as amended. With respect to the collection of information, the CFTC invites comments on: • Whether the proposed collection of information is necessary for the proper performance of the functions of the CFTC, including whether the information will have a practical use; • The accuracy of the CFTC’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; • Ways to enhance the quality, usefulness, and clarity of the information to be collected; and • Ways to minimize the burden of collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques or other forms of information technology; e.g., permitting electronic submission of responses. You should submit only information that you wish to make available publicly. If you wish the CFTC to consider information that you believe is exempt from disclosure under the Freedom of Information Act (FOIA), then a petition for confidential treatment of the exempt information may be submitted according to the procedures established in § 145.9 of the CFTC’s regulations.2 The CFTC reserves the right, but shall have no obligation, to review, prescreen, filter, redact, refuse or remove any or all of your submission from https://www.cftc.gov that it may deem to be inappropriate for publication, such as obscene language. All submissions that have been redacted or removed that contain comments on the merits of the Information Correction Request will be retained in the public comment file and will be considered as required under the 2 17 CFR 145.9. VerDate Sep<11>2014 16:45 Nov 04, 2022 Jkt 259001 Administrative Procedure Act and other applicable laws, and may be accessible under FOIA. Burden statement: The respondent’s burden for this collection is estimated to average 0.10 hours per response to file the brief written statement. This estimate includes the time needed to review instructions, utilize technology and systems for the purposes of collecting, validating, verifying, processing and disclosing information, and adjust/update existing methods to comply with any previously applicable instructions and requirements. Respondents/Affected Entities: Former Commission members, employees, and their current employers. Estimated number of respondents: 20. Estimated annual burden hours per respondent: 0.10 hours (or 6 minutes). Estimated total annual burden: 2 hours. Frequency of collection: On occasion. There are no capital costs or operating and maintenance costs associated with this collection. (Authority: 44 U.S.C. 3501 et seq.) Dated: November 2, 2022. Robert Sidman, Deputy Secretary of the Commission. [FR Doc. 2022–24205 Filed 11–4–22; 8:45 am] BILLING CODE 6351–01–P BUREAU OF CONSUMER FINANCIAL PROTECTION [Docket No. CFPB–2021–0017] Notice and Request for Comment Regarding the CFPB’s Inquiry Into Big Tech Payment Platforms Bureau of Consumer Financial Protection. ACTION: Notice; request for comment. AGENCY: On October 21, 2021, the Consumer Financial Protection Bureau (Bureau or CFPB) ordered six large technology companies operating payments systems in the United States to provide information about certain of their business practices. Accompanying the orders, the Director of the Bureau issued a statement and invited interested parties to submit comments to inform the Bureau’s inquiry. The statement and request for comment was published in the Federal Register on November 5, 2021, in a document titled, ‘‘Notice and Request for Comment Regarding the CFPB’s Inquiry into Big Tech Payment Platforms.’’ The Bureau has determined that it is appropriate to re-open the docket for 30 days from Federal Register publication and add two questions. SUMMARY: PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 67023 Comments must be received on or before December 7, 2022. DATES: You may submit comments, identified by Docket No. CFPB–2021– 0017, by any of the following methods: • Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments. • Email: BigTechPaymentsInquiry@ cfpb.gov. Include Docket No. CFPB– 2021–0017 in the subject line of the message. • Mail/Hand Delivery/Courier: Comment Intake—Statement into Big Tech Payment Platforms, Consumer Financial Protection Bureau, c/o Legal Division Docket Manager, 1700 G Street NW, Washington, DC 20552. Because paper mail in the Washington, DC area and at the Bureau is subject to delay, commenters are encouraged to submit comments electronically. Instructions: The Bureau encourages the early submission of comments. Please note the number of the topic on which you are commenting at the top of each response (you do not need to address all topics). All submissions should include document title and docket number. In general, all comments received will be posted without change to https:// www.regulations.gov. All comments, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. Proprietary information or sensitive personal information, such as account numbers or Social Security numbers, or names of other individuals, should not be included. Comments will not be edited to remove any identifying or contact information. ADDRESSES: FOR FURTHER INFORMATION CONTACT: Amy Zirkle, Program Manager for Payments & Deposits, (202) 435–7505. If you require this document in an alternative electronic format, please contact CFPB_Accessibility@cfpb.gov. On October 21, 2021, the CFPB ordered six large technology companies operating payments systems in the United States to provide information about certain of their business practices. Accompanying the orders, the Director of the Bureau issued a statement and invited interested parties to submit comments to inform the inquiry. The statement and request for comment were published in the Federal Register on November 5, 2021,1 in a document titled ‘‘Notice and Request for Comment SUPPLEMENTARY INFORMATION: 1 86 FR 61182 (Nov. 5, 2021). E:\FR\FM\07NON1.SGM 07NON1 khammond on DSKJM1Z7X2PROD with NOTICES 67024 Federal Register / Vol. 87, No. 214 / Monday, November 7, 2022 / Notices Regarding the CFPB’s Inquiry into Big Tech Payment Platforms.’’ The CFPB has determined that it is appropriate to re-open the comment period to further inform the inquiry described by the Director in his October 21, 2021 Statement: Faster, friction-less, and cheaper payment systems offer significant potential benefits to consumers, workers, their families, and small businesses in the United States. For example, families can send money to friends without delay, or to relatives overseas at lower costs. Fast payment systems can also help small businesses succeed with quicker transactions, lower cost, and more revenue conversion. And faster settlement can reduce the need for families and businesses to borrow. But payments businesses are network businesses and can gain tremendous scale and market power, potentially posing new risks and undermining fair competition. Furthermore, knowing what we spend our money on is a valuable source of data on consumer behavior. This data can be monetized by companies that seek to profit from behavioral targeting, particularly around advertising and e-commerce. That many Big Tech companies aspire to grow in this space only heightens these concerns. In China, we can already see the longterm implications of these forces. Alipay and WeChat Pay are deeply imbedded into the lives of the Chinese public, combining messaging, e-commerce and payment functionality into super-apps. In such a market, consumers have little choice but to use these apps and little market power to shape how their data is used. Today the Consumer Financial Protection Bureau (CFPB) has ordered six technology platforms offering payment services to turn over information about their products, plans and practices when it comes to payments. The orders were issued to Google, Apple, Facebook, Amazon, Square, and PayPal. The CFPB will also study the practices of the Chinese tech giants that offer payments services, such as WeChat Pay and Alipay. Congress has tasked the CFPB with ensuring that markets for consumer financial products and services are fair, transparent, and competitive. To that end, it has authorized the CFPB to require participants in the marketplace to provide information that help the Bureau monitor risks to consumers and to publish aggregated findings that are in the public interest. Little is known publicly about how Big Tech companies will exploit their VerDate Sep<11>2014 16:45 Nov 04, 2022 Jkt 259001 payments platforms. For example, will the operators engage in invasive financial surveillance and combine the data they collect on consumers with their geolocation and browsing data? 2 Will they in turn use this data to deepen behavioral advertising, engage in price discrimination, or sell to third parties? Will these companies operate their payment platforms in a manner that interferes with fair, transparent, and competitive markets? Will the payment platforms be truly neutral, or will they use their scale to extract rents from market participants? Will small businesses feel coerced into participating in the payment platform out of fear of being suppressed or hidden in search or product listings? If these tech companies enter a market that competes with other providers on the platform, will these providers be removed or otherwise disadvantaged? What factors will these tech companies use when disqualifying or delisting an individual or business from participating on the platform? Finally, how will these payment platforms ensure that key consumer protections are adhered to? How effectively do they manage complaints, disputes and errors? Are they sufficiently staffed to ensure adequate steps are taken to address consumer protection and provide responsive customer service when things go wrong? 3 The CFPB’s inquiry will help to inform regulators and policymakers about the future of our payments system. Importantly, it will also yield insights that may help the CFPB to implement other statutory responsibilities, including any potential rulemaking under Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The CFPB’s orders build on the efforts of the Federal Trade Commission’s work to shed light on the business practices of the largest technology companies in the world. The CFPB’s inquiry is one of many efforts within the Federal Reserve System to plan for the future of realtime payments and to ensure a fair and competitive payments system in our country. The Bureau intends to open a Federal Register docket to invite public comment. I invite any interested parties 2 In 2019, I joined global privacy regulators to seek information about Facebook’s Libra project. At the time, the company failed to substantively respond. See https://www.priv.gc.ca/en/opc-news/ speeches/2019/s-d_190805/. 3 The law currently provides for a number of safeguards in the payments sector, including but not limited to the Electronic Fund Transfer Act, the Gramm-Leach-Bliley Act, and the Consumer Financial Protection Act. PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 to submit comments to inform the agency’s inquiry. In addition, the Bureau is inviting comment on the following questions related to the Bureau’s inquiry: 1. What fees, fines, or other penalties do large technology companies assess on users of their payment platforms, including for: a. Purported violations of the technology companies’ acceptable use policies; or b. Any other conduct? 2. Do the acceptable use policies for technology companies’ payment platforms include provisions that can restrict access to their platforms? If so, under what circumstances can the technology companies restrict access to their platforms? Re-opening the comment period will provide additional opportunity for the public to prepare comments related to this inquiry and to comment on the additional questions. Therefore, the CFPB is re-opening the comment period for an additional 30 days. Rohit Chopra, Director, Consumer Financial Protection Bureau. [FR Doc. 2022–24214 Filed 11–4–22; 8:45 am] BILLING CODE 4810–AM–P U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION Notice of Public Hearing U.S. International Development Finance Corporation. ACTION: Announcement of public hearing. AGENCY: The Board of Directors of the U.S. International Development Finance Corporation (‘‘DFC’’) will hold a public hearing on December 7, 2022. This hearing will afford an opportunity for any person to present views in accordance the BUILD Act of 2018. Those wishing to present at the hearing must provide advance notice to the agency as detailed below. DATES: Public hearing: 2 p.m., Wednesday, December 7, 2022. Deadline for notifying agency of an intent to attend or present at the public hearing: 5 p.m., Tuesday, November 29, 2022. Deadline for submitting a written statement: 5 p.m., Tuesday, November 29, 2022. ADDRESSES: Public hearing: Virtual; access information provided at the time of attendance registration. You may send notices of intent to attend, present, or submit a written SUMMARY: E:\FR\FM\07NON1.SGM 07NON1

Agencies

[Federal Register Volume 87, Number 214 (Monday, November 7, 2022)]
[Notices]
[Pages 67023-67024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24214]


=======================================================================
-----------------------------------------------------------------------

BUREAU OF CONSUMER FINANCIAL PROTECTION

[Docket No. CFPB-2021-0017]


Notice and Request for Comment Regarding the CFPB's Inquiry Into 
Big Tech Payment Platforms

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice; request for comment.

-----------------------------------------------------------------------

SUMMARY: On October 21, 2021, the Consumer Financial Protection Bureau 
(Bureau or CFPB) ordered six large technology companies operating 
payments systems in the United States to provide information about 
certain of their business practices. Accompanying the orders, the 
Director of the Bureau issued a statement and invited interested 
parties to submit comments to inform the Bureau's inquiry. The 
statement and request for comment was published in the Federal Register 
on November 5, 2021, in a document titled, ``Notice and Request for 
Comment Regarding the CFPB's Inquiry into Big Tech Payment Platforms.'' 
The Bureau has determined that it is appropriate to re-open the docket 
for 30 days from Federal Register publication and add two questions.

DATES: Comments must be received on or before December 7, 2022.

ADDRESSES: You may submit comments, identified by Docket No. CFPB-2021-
0017, by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include Docket No. 
CFPB-2021-0017 in the subject line of the message.
     Mail/Hand Delivery/Courier: Comment Intake--Statement into 
Big Tech Payment Platforms, Consumer Financial Protection Bureau, c/o 
Legal Division Docket Manager, 1700 G Street NW, Washington, DC 20552. 
Because paper mail in the Washington, DC area and at the Bureau is 
subject to delay, commenters are encouraged to submit comments 
electronically.
    Instructions: The Bureau encourages the early submission of 
comments. Please note the number of the topic on which you are 
commenting at the top of each response (you do not need to address all 
topics). All submissions should include document title and docket 
number. In general, all comments received will be posted without change 
to https://www.regulations.gov. All comments, including attachments and 
other supporting materials, will become part of the public record and 
subject to public disclosure. Proprietary information or sensitive 
personal information, such as account numbers or Social Security 
numbers, or names of other individuals, should not be included. 
Comments will not be edited to remove any identifying or contact 
information.

FOR FURTHER INFORMATION CONTACT: Amy Zirkle, Program Manager for 
Payments & Deposits, (202) 435-7505. If you require this document in an 
alternative electronic format, please contact 
[email protected].

SUPPLEMENTARY INFORMATION: On October 21, 2021, the CFPB ordered six 
large technology companies operating payments systems in the United 
States to provide information about certain of their business 
practices. Accompanying the orders, the Director of the Bureau issued a 
statement and invited interested parties to submit comments to inform 
the inquiry. The statement and request for comment were published in 
the Federal Register on November 5, 2021,\1\ in a document titled 
``Notice and Request for Comment

[[Page 67024]]

Regarding the CFPB's Inquiry into Big Tech Payment Platforms.''
---------------------------------------------------------------------------

    \1\ 86 FR 61182 (Nov. 5, 2021).
---------------------------------------------------------------------------

    The CFPB has determined that it is appropriate to re-open the 
comment period to further inform the inquiry described by the Director 
in his October 21, 2021 Statement:
    Faster, friction-less, and cheaper payment systems offer 
significant potential benefits to consumers, workers, their families, 
and small businesses in the United States. For example, families can 
send money to friends without delay, or to relatives overseas at lower 
costs. Fast payment systems can also help small businesses succeed with 
quicker transactions, lower cost, and more revenue conversion. And 
faster settlement can reduce the need for families and businesses to 
borrow.
    But payments businesses are network businesses and can gain 
tremendous scale and market power, potentially posing new risks and 
undermining fair competition. Furthermore, knowing what we spend our 
money on is a valuable source of data on consumer behavior. This data 
can be monetized by companies that seek to profit from behavioral 
targeting, particularly around advertising and e-commerce. That many 
Big Tech companies aspire to grow in this space only heightens these 
concerns.
    In China, we can already see the long-term implications of these 
forces. Alipay and WeChat Pay are deeply imbedded into the lives of the 
Chinese public, combining messaging, e-commerce and payment 
functionality into super-apps. In such a market, consumers have little 
choice but to use these apps and little market power to shape how their 
data is used.
    Today the Consumer Financial Protection Bureau (CFPB) has ordered 
six technology platforms offering payment services to turn over 
information about their products, plans and practices when it comes to 
payments. The orders were issued to Google, Apple, Facebook, Amazon, 
Square, and PayPal. The CFPB will also study the practices of the 
Chinese tech giants that offer payments services, such as WeChat Pay 
and Alipay.
    Congress has tasked the CFPB with ensuring that markets for 
consumer financial products and services are fair, transparent, and 
competitive. To that end, it has authorized the CFPB to require 
participants in the marketplace to provide information that help the 
Bureau monitor risks to consumers and to publish aggregated findings 
that are in the public interest.
    Little is known publicly about how Big Tech companies will exploit 
their payments platforms. For example, will the operators engage in 
invasive financial surveillance and combine the data they collect on 
consumers with their geolocation and browsing data? \2\ Will they in 
turn use this data to deepen behavioral advertising, engage in price 
discrimination, or sell to third parties?
---------------------------------------------------------------------------

    \2\ In 2019, I joined global privacy regulators to seek 
information about Facebook's Libra project. At the time, the company 
failed to substantively respond. See https://www.priv.gc.ca/en/opc-news/speeches/2019/s-d_190805/.
---------------------------------------------------------------------------

    Will these companies operate their payment platforms in a manner 
that interferes with fair, transparent, and competitive markets? Will 
the payment platforms be truly neutral, or will they use their scale to 
extract rents from market participants? Will small businesses feel 
coerced into participating in the payment platform out of fear of being 
suppressed or hidden in search or product listings? If these tech 
companies enter a market that competes with other providers on the 
platform, will these providers be removed or otherwise disadvantaged? 
What factors will these tech companies use when disqualifying or 
delisting an individual or business from participating on the platform?
    Finally, how will these payment platforms ensure that key consumer 
protections are adhered to? How effectively do they manage complaints, 
disputes and errors? Are they sufficiently staffed to ensure adequate 
steps are taken to address consumer protection and provide responsive 
customer service when things go wrong? \3\
---------------------------------------------------------------------------

    \3\ The law currently provides for a number of safeguards in the 
payments sector, including but not limited to the Electronic Fund 
Transfer Act, the Gramm-Leach-Bliley Act, and the Consumer Financial 
Protection Act.
---------------------------------------------------------------------------

    The CFPB's inquiry will help to inform regulators and policymakers 
about the future of our payments system. Importantly, it will also 
yield insights that may help the CFPB to implement other statutory 
responsibilities, including any potential rulemaking under Section 1033 
of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The 
CFPB's orders build on the efforts of the Federal Trade Commission's 
work to shed light on the business practices of the largest technology 
companies in the world.
    The CFPB's inquiry is one of many efforts within the Federal 
Reserve System to plan for the future of real-time payments and to 
ensure a fair and competitive payments system in our country. The 
Bureau intends to open a Federal Register docket to invite public 
comment. I invite any interested parties to submit comments to inform 
the agency's inquiry.
    In addition, the Bureau is inviting comment on the following 
questions related to the Bureau's inquiry:
    1. What fees, fines, or other penalties do large technology 
companies assess on users of their payment platforms, including for:
    a. Purported violations of the technology companies' acceptable use 
policies; or
    b. Any other conduct?
    2. Do the acceptable use policies for technology companies' payment 
platforms include provisions that can restrict access to their 
platforms? If so, under what circumstances can the technology companies 
restrict access to their platforms?
    Re-opening the comment period will provide additional opportunity 
for the public to prepare comments related to this inquiry and to 
comment on the additional questions. Therefore, the CFPB is re-opening 
the comment period for an additional 30 days.

Rohit Chopra,
Director, Consumer Financial Protection Bureau.
[FR Doc. 2022-24214 Filed 11-4-22; 8:45 am]
BILLING CODE 4810-AM-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.