Andrew L. Sandler and Margo Tank Quoted in Law360 Article, "CFPB Turns Focus From Consumer Harm in Data Security Debut"Andrew L. Sandler, Margo H. K. Tank
Andrew L. Sandler and Margo Tank were quoted in Allison Grande's Law360 article, "CFPB Turns Focus From Consumer Harm in Data Security Debut," on March 3, 2016.
The Consumer Financial Protection Bureau burst onto the increasingly crowded data security scene Wednesday by taking aim at an online payment platform that had allegedly failed to live up to its privacy promises, an action that demonstrates that the agency won’t hesitate to wield its broad powers even in situations where no consumer data was exposed.
More than four years after the CFPB officially opened its doors, the agency continued its steady expansion on the enforcement front by adding its name to the growing list of regulators on the data security beat with the first-of-its-kind consent order against Iowa-based Dwolla Inc.
The CFPB alleged that Dwolla deceived consumers by claiming to have data security practices that surpassed industry standards, when in reality, it failed to employ reasonable and appropriate measures to protect data obtained from consumers. Under the terms of the consent order, Dwolla has agreed to pay a $100,000 penalty and correct its security practices to resolve these claims.
“The CFPB’s action against Dwolla is significant in that it marks the bureau’s first foray into an area that up until now was the domain of the Federal Trade Commission and sets up the enforcement stage in this area for the bureau in 2016,” Buckley Sandler LLP chairman and executive partner Andrew L. Sandler said.