FTC Releases Annual Report to CFPB on 2022 Enforcement and Related Activities

The Federal Trade Commission (FTC) staff recently responded (the Report) to the CFPB’s request for a report on the FTC’s 2022 enforcement and other related activities concerning the Truth in Lending Act (TILA), the Consumer Leasing Act (CLA), and the Electronic Funds Transfer Act (EFTA).  This information is used by the CFPB in completing its Annual Report to Congress. 

The Report first details enforcement actions the FTC took against companies, including auto dealers, a payday lender, a student debt relief scheme, a jewelry retailer, and a computer financing scheme, for alleged violations of TILA and CLA.  Some of the alleged violations included: deceptive advertising, deceptive junk fees, falsifying information on consumer applications, and failure to make required written disclosures and advertising disclosures.  Also related to TILA and CLA, the Report stated that the FTC (i) proposed a rule banning certain bait-and-switch advertising and junk fees; (ii) released a report on dark patterns, such as burying key terms and pre-checking boxes; and (iii) updated or released various publications to educate the public about credit, financing, and mortgages.

The Report also addresses the FTC’s actions regarding the EFTA.  The FTC alleged violations against multiple companies (including some of the same companies described above) for practices such as using “negative option” plans and debiting consumers’ bank accounts without prior written authorization.  The Report also noted the FTC’s work providing consumer education about ATM and debit cards.