On July 8, 2025, the US Court of Appeals for the Eighth Circuit vacated the entirety of the Federal Trade Commission’s new Negative Option Rule – popularly known as the Click-to-Cancel Rule – just days before it was scheduled to take full effect. While the rule has been vacated, the FTC can still police unfair and deceptive subscription practices under existing statutory authority. Companies also must continue …
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CFPB Withdraws Guidance Documents in Shift From Nonbinding Policymaking
The Consumer Financial Protection Bureau (CFPB) withdrew nearly 70 interpretive rules, policy statements and advisory opinions as part of its shift away from “regulation by guidance.” The rescinded documents impact nearly all consumer protection laws, including the Fair Credit Reporting Act, the Truth in Lending Act, the Consumer Financial Protection Act’s prohibition on unfair, deceptive, or abusive acts or practices, and the Electronic Fund Transfer …
California DFPI Issues Annual Report Detailing Key Consumer Protection Accomplishments
On May 29, 2025, the California Department of Financial Protection and Innovation (DFPI) issued its annual report highlighting its activities and accomplishments in 2024 under the California Consumer Financial Protection Law (CCFPL). The DFPI reported that it issued regulations with new registration requirements for providers of earned wage access products, private postsecondary education financing, debt settlement services and student debt relief services – all of …
CFPB Announces Plan to Review Offenses Carrying Criminal Penalties
On June 27, 2025, the Consumer Financial Protection Bureau (CFPB) issued a policy statement that outlines its plan to address criminal regulatory offenses within its jurisdiction, as directed by the May 2025 Executive Order (EO) 14294. The CFPB notes that it will publish a report to include a list of “all criminal regulatory offenses enforceable by the Bureau or the Department of Justice,” along with …
Trump CFPB Asserts Narrower Role for State Enforcement of Federal Consumer Law
On May 15, 2025, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule that rescinded a Biden-era interpretive rule regarding the extent of states’ enforcement authority under Section 1042 of the Consumer Financial Protection Act (CFPA). While states may continue to bring actions to enforce provisions of the CFPA, the new interpretive rule suggests that states may not bring actions arising under any enumerated …
Executive Order Seeks to Eliminate Federal Deployment of Disparate Impact Theory of Discrimination
The Trump administration issued an executive order declaring that federal agencies are to discontinue use of disparate impact liability to administer antidiscrimination statutes. The executive order directs agencies to conduct a review of regulations and other guidance that contemplate disparate impact liability. Notably, the directive applies across the entire government – meaning that this order will significantly impact litigation, compliance and enforcement priorities for federal …
Rhode Island Enacts New Financial Institutions Cybersecurity Law With Immediate Effect
More states are advancing prescriptive cybersecurity standards and requirements for financial institutions, many of which align with regulations from New York’s Department of Financial Services. Rhode Island’s legislature passed Senate Bill 603, effective immediately, which requires specific cybersecurity controls and notice to the Department of Business Regulation within three business days of determining a security event has occurred. North Dakota’s new law, House Bill 1127, …
CFPB Moves to Vacate Its Own Open Banking Rule, Citing Legal Deficiencies and Overreach
On May 30, the Consumer Financial Protection Bureau (CFPB) filed a motion to vacate its own open banking rule, arguing that the rule exceeds its authority under Section 1033 of the Dodd-Frank Act. The CFPB asserts that the rule exceeds its legal authority by requiring data sharing with authorized third parties, unlawfully prohibits data providers from charging fees, inadequately addresses consumer data and security risks, …
FDIC Rules Rollback Foretells More Pro-Industry Changes
Cooley lawyers Obrea Poindexter, Jasmine Banks and Elyse Moyer co-authored an article for Law360 about the Federal Deposit Insurance Corporation (FDIC) withdrawing proposed rules that were intended to reshape regulatory obligations related to corporate governance practices. Read the article (subscription required) and see this related Cooley alert.
FDIC: Banks Can Engage in Crypto-Related Activities Without Prior Notice
On March 28, 2025, the Federal Deposit Insurance Corporation (FDIC) rescinded guidance issued under the Biden administration that required supervised institutions to notify and await feedback from the FDIC prior to engaging in crypto-related activities. The FDIC’s change of course follows a similar reversal by the Office of the Comptroller of the Currency and aligns with the Trump administration’s efforts to reform federal cryptocurrency regulation. …