CFPB Rule Targets Digital Marketing Providers – The National Law Review


On August 10, 2022, the Consumer Financial Protection Bureau (“CFPB”) issued a new interpretive rule clarifying when digital marketing providers must comply with federal consumer financial protection law. Under the new rule, Big Tech companies that use behavioral advertising techniques to market financial products will be subject to the Consumer Financial Protection Act of 2010 (“CFPA”).
A company is subject to the CFPA, and therefore prohibited from engaging in unfair, deceptive or abusive acts or practices, if it offers or provides a financial product or service for personal, family or household use by consumers. Service providers to these companies that provide a “material service” in connection with the offering or provision of a consumer financial product or service also are subject to the CFPA. Service providers that merely provide “time or space for an advertisement for a consumer financial product or service through print, newspaper, or electronic media” are exempt.
The CFPB’s new interpretive rule clarifies that, when digital marketing providers are materially involved in the development of content strategy, they provide a material service and therefore would be considered service providers subject to the CFPA. Under the rule, digital marketing providers are “materially involved in the development of content strategy” when they identify or select prospective customers or select or place content to affect consumer engagement, including purchasing or adoption behavior.
As an example, the CFPB provides that digital marketing providers qualify as service providers when they target and deliver advertisements to users with certain characteristics, regardless of whether the characteristics are specified by the company using the digital marketing provider. Similarly, a digital marketing provider is considered a service provider when a company identifies particular users by name and the digital marketing provider targets and delivers the advertisements to those users at specific times to increase or maximize engagement. Digital marketing providers also are characterized as service providers when they determine or suggest which users are the appropriate audience for advertisements. In the announcement of the rule, CFPB Director Rohit Chopra warned that Big Tech firms using behavioral targeting techniques to market financial products will now be within the scope of the CFPA, and highlighted the need for law enforcement authorities to hold these companies accountable. Under the CFPA, both the CFPB and states can bring enforcement actions against regulated companies that engage in unfair, deceptive or abusive practices.
About this Author
In today’s digital economy, companies face unprecedented challenges in managing privacy and cybersecurity risks associated with the collection, use and disclosure of personal information about their customers and employees. The complex framework of global legal requirements impacting the collection, use and disclosure of personal information makes it imperative that modern businesses have a sophisticated understanding of the issues if they want to effectively compete in today’s economy.
Hunton Andrews Kurth LLP’s privacy and cybersecurity practice helps companies manage data and…
As a woman owned company, The National Law Review is a certified member of the Women's Business Enterprise National Council
You are responsible for reading, understanding and agreeing to the National Law Review’s (NLR’s) and the National Law Forum LLC’s  Terms of Use and Privacy Policy before using the National Law Review website. The National Law Review is a free to use, no-log in database of legal and business articles. The content and links on are intended for general information purposes only. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor.  
Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The National Law Review is not a law firm nor is  intended to be  a referral service for attorneys and/or other professionals. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional.  NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. 
Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. Statement in compliance with Texas Rules of Professional Conduct. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials.
The National Law Review – National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521  Telephone  (708) 357-3317 or toll free (877) 357-3317.  If you would ike to contact us via email please click here.


Leave a Reply

Your email address will not be published.