Google sues US Consumer Financial Protection Bureau over federal supervision
order for Google Pay

Date:
Mon, 09 Dec 2024 17:04:00 +0000

Description:
Google is unhappy with its federal supervision order from the Consumer
Financial Protection Bureau.

FULL STORY

The Consumer Financial Protection Bureau (CFPB) recently announced it has
placed Google Payment Corp, a division of Google under federal supervision,
citing consumer complaints. 

In response, Google filed a lawsuit in the US District Court challenging the
agencys decision stating that the Bureaus supervision would be a burdensome
form of regulation based on a small number of unsubstantiated user complaints
(via CNN ). 

The CFPBs move would subject Google to the same regulatory oversight as major
banks and financial institutions.

Google hits back at federal supervision order

This is a clear case of government overreach involving Google Pay 
peer-to-peer payments, which never raised risks and is no longer provided in
the US, and we are challenging it in court," noted Google spokesperson Jos
Castaeda. 

The CFPB emphasized that its decision does not imply any findings of
misconduct, but rather that complaints have indicated that Google Payment 
Corp failed to implement sufficient fraud prevention measures. 

The supervision follows the CFPBs 202 expansion of authority, which allowed 
it to begin examining nonbank financial institutions. Back then, CFPB 
Director Rohit Chopra said: This authority gives us critical agility to move
as quickly as the market, allowing us to conduct examinations of financial
companies posing risks to consumers and stop harm before it spreads. 

Besides stating the CFPBs decision for supervision imposes an unjustified
regulatory burden upon Google, including invasive examinations and document
requests, the company also disputes the validity of the complaints as a basis
for federal oversight. 

However, all is not lost for Google, which could benefit from the incoming
presidential administration  President-elect Trump could reverse some of the
regulatory actions initiated under current leadership. 

 TechRadar Pro has asked the Consumer Financial Protection Bureau for a
comment, but we did not receive an immediate response.

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Link to news story:
https://www.techradar.com/pro/google-sues-us-consumer-financial-protection-bur
eau-over-order-of-federal-supervision-for-google-pay

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