- The US Consumer Financial Protection Bureau recently placed Google under surveillance
- The federal action comes amid consumer complaints
- Google says the regulations would be a burden
The Consumer Financial Protection Bureau (CFPB) recently announced that it has placed Google Payment Corp, a division of Google, under federal supervision, citing consumer complaints.
In response, Google filed a lawsuit in U.S. District Court challenging the agency’s decision, which stated that the agency’s oversight would be a “burdensome form of regulation” based on a “small number of unsubstantiated complaints from users” (via CNN).
The CFPB’s move would subject Google to the same scrutiny as major banks and financial institutions.
Google backtracks on federal surveillance order
“This is a clear case of government overreach regarding peer-to-peer payments through Google Pay, which never carried any risk and is no longer offered in the US, and we are challenging this in court,” said Google spokesperson José Castañeda.
The CFPB emphasized that its decision does not imply any findings of misconduct, but rather that complaints show that Google Payment Corp failed to implement sufficient fraud prevention measures.
The oversight follows the expansion of the CFPB’s powers, which allowed it to investigate non-bank financial institutions. At the time, CFPB Director Rohit Chopra said: “This authority gives us the critical flexibility to move as fast as the market, allowing us to conduct investigations into financial companies that pose risks to consumers and stop the harm before it spreads .”
In addition to the CFPB’s decision to conduct oversight imposing undue regulatory burdens on Google, including invasive investigations and document requests, the company is also challenging the validity of the complaints as a basis for federal oversight.
Still, 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 the current leadership.
Ny Breaking reached out to the Consumer Financial Protection Bureau for comment, but we did not immediately receive a response.