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

For fintech companies, adapting to this evolving regulatory environment is essential. The article provides practical strategies for how companies can ensure robust consumer protection, protect data privacy, and maintain accurate advertising practices. Addressing these areas is critical to navigating heightened oversight and maintaining consumer trust.

The piece begins with the authors addressing the increasing regulatory attention on Big Tech and data-driven financial services. Both the CFPB and the FTC are intensifying their efforts to address the challenges posed by transformative technologies and the digital economy. Under Director Rohit Chopra, the CFPB is focusing more on data practices and large technology firms in consumer finance, indicating a notable shift into areas traditionally overseen by the FTC. Simultaneously, the FTC, led by Chair Lina Khan, is reinforcing its oversight of Big Tech's data practices, particularly concerning the protection of sensitive information such as location, health, and financial data.

The article then proceeds to explore 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 on the use of consumer financial data, particularly in the fintech and digital payments sectors.

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