Consumer Protection Law Commons^™

Fintech's Double Edges, Christopher G. Bradley

Chicago-Kent Law Review

This symposium essay examines the double-edged nature of financial technologies in financial transactions, especially transactions involving consumers. There are both benefits and risks—often undiscovered or hidden at first—in each new round of financial technologies. A FinTech tool may benefit consumers and then, applied later or in a different context, threaten consumer interests; a tool that harms consumer interests may then lead to development of a tool that favors them. This double-edged nature is an important but unappreciated structural feature of financial technologies. From the perspective of consumer protection, then, FinTech can neither be fully embraced as friend nor restricted as …

The Rise Of Automated Investment Advice: Can Robo-Advisors Rescue The Retail Market?, Benjamin P. Edwards

Chicago-Kent Law Review

Different types of financial advisers serve the massive and widely dispersed retail investment market. In a market riddled with conflicts of interests, many advisers exploit retail customers by pitching suboptimal products, leading to lower investment returns and lower overall growth—but also to greater profits for the financial advisers collecting kickback-style commissions. New financial technology firms, commonly known as Robo-Advisers, may disrupt this market and these exploitative practices. Still, these potentially disruptive automated investment advice firms face significant regulatory risks.

Computer As Confidant: Digital Investment Advice And The Fiduciary Standard, Nicole G. Iannarone

Chicago-Kent Law Review

Digital investment advisers are the fastest growing segment of financial technology (fintech) and are disrupting traditional investment advisory delivery models. The computer-led investment advisory service model may be growing particularly quickly due to a confluence of social and political factors. Politicians and regulators have increasingly focused on the standards of care applicable to investment advice providers. Fewer Americans are ready for retirement and many lack access to affordable investment advice. At the same time, comfort with digital platforms have increased, with some preferring electronic interaction over human interaction. Claiming that they can democratize retirement service by pro- viding advice meeting …

Regtech, Compliance And Technology Judgement Rule, Nizan Geslevich Packin

Chicago-Kent Law Review

This Article focuses on the rise of Financial Technology, which revolutionized consumer financial service products, and challenged policymakers with regulating the rapidly evolving financial industry. In particular, it explores Regulatory Technology, also known as RegTech, which is the finance industry’s use of technology, especially information technology, in the context of regulatory monitoring, reporting and compliance. RegTech is designed to solve industry needs for a more effective and efficient way to automate corporate governance and compliance processes. Not only has FinTech proven to be a vital revenue source, especially in connection with lending or money transmission services, but it also helps …

Fintech: Antidote To Rent-Seeking?, Jeremy Kidd J.D., Ph.D

Chicago-Kent Law Review

Innovations in financial technology, or Fintech, has been ongoing for decades but has recently begun to accelerate. Some observers have argued that it will soon begin to outstrip the ability of regulators to keep pace. If those predictions are accurate, what would the world look like with a financial sector that cannot be effectively regulated? One possibility—drawn from public choice economics—is that rent-seeking will be inhibited or eliminated. Rent-seeking is the distortion of law and regulation for the benefit of special interests, who expend resources to guarantee those distortions in their favor. Rent-seeking is inefficient and inhibits growth and innovation, …

New Art For The People: Art Funds & Financial Technology, Brian L. Frye

Chicago-Kent Law Review

Fine art sales have reached record levels, with the global art market achieving annual sales of over $60 billion. However, the art market is extremely risky and the most lucrative investment opportunities are typically at the high end of the market. In recent years, financial industry professionals with an interest in the art world have increasingly formed art investment funds, intended to enable smaller investors to take advantage of the opportunity to invest in the art world and diversify their portfolios. Some art funds also allow art investors to borrow against certain assets. About 45 art investment funds currently exist, …

The Promise And Perils Of Algorithmic Lenders’ Use Of Big Data, Matthew Adam Bruckner

Chicago-Kent Law Review

Tens of millions of Americans lack access to traditional forms of credit and must rely on payday and pawn loans instead. “Algorithmic lending 2.0” promises to enable fintech companies to lend to those excluded from traditional forms of credit. Version 2.0 algorithmic lenders claim to use Big Data and machine learning to increase credit access by making better predictions about prospective borrowers’ creditworthiness and decreasing the cost of credit. Supporters also claim that algorithmic lending 2.0 removes human bias from the financial services sector. Detractors have cast doubt on both claims, arguing that there is scant evidence that algorithmic lending …

Not So Good: The Classification Of “Smart Goods” Under Ucc Article 2, Chadwick L. Williams

Georgia State University Law Review

Refrigerators can now tweet. Today, almost sixty years after the states widely adopted the Uniform Commercial Code (UCC), the line between goods and services is more blurred than ever. When the UCC was drafted, a good was the simple opposite of a service. A good was something “movable” and tangible, and a service was not. Article 2 of the UCC, which governs sales, limits its scope to goods.

However, because Article 2 was drafted long before the proliferation of so-called “smart goods,” courts continuously struggle to determine when a smart good falls within Article 2’s scope. Courts have developed different …

Privacy Of Information And Dna Testing Kits, Shanna Raye Mason

Catholic University Journal of Law and Technology

In modern times, consumers desire for more control over their own health and healthcare. With this growing interest of control, direct to consumer DNA testing kits have never been more popular. However, many consumers are unaware of the potential privacy concerns associated with such use. This comment examines the popularity and privacy risks that are likely unknown to the individual consumer. This comment also addresses the shortcomings of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), as well as the Genetic Information Nondiscrimination Act of 2008 (GINA) in regard to protecting individual’s genetic information from misuse. This comment …

Fintech: Antidote To Rent-Seeking?, Jeremy Kidd

Articles

Fintech is a reality of our modern society, and will likely become even more so in the future. Peer-to-peer lending, cybercurrencies, smart contracts, algorithmic lending, and more, have required adaptation by consumers and producers of financial services. Our modes of doing business will continue to be challenged and changed by these and other Fintech innovations, almost certainly expanding beyond merely “promot[ing] financial inclusion, expand[ing] access to capital for individuals and small businesses, and more broadly reshap[ing] how society interacts with financial services.” By reducing transaction costs, advancing technology opens the doors to innovations the likes of which we might not …

The Gdpr’S Version Of Algorithmic Accountability, Margot Kaminski

Publications

No abstract provided.

Online And "As Is", Colin P. Marks

Faculty Works

No abstract provided.

Alexa, Who Owns My Pillow Talk? Contracting, Collaterizing, And Monetizing Consumer Privacy Through Voice-Captured Personal Data, Anne Logsdon Smith

Catholic University Journal of Law and Technology

With over one-fourth of households in the U.S. alone now using voice-activated digital assistant devices such as Amazon’s Echo (better known as “Alexa”) and Google’s Home, companies are recording and transmitting record volumes of voice data from the privacy of people’s homes to servers across the globe. These devices capture conversations about everything from online shopping to food preferences to entertainment recommendations to bedtime stories, and even phone and appliance use. With “Big Data” and business analytics expected to be a $203 billion-plus industry by 2020, companies are racing to acquire and leverage consumer data by selling it, licensing it, …

Ride Oversharing: Privacy Regulation Within The Gig Economy, Casey Thomas

Cardozo Arts & Entertainment Law Journal

No abstract provided.

The Uberization Of Arbitration Clauses, Jill I. Gross

Arbitration Law Review (2009 - Present)

No abstract provided.

It Depends: Recasting Internet Clickwrap, Browsewrap, "I Agree," And Click-Through Privacy Clauses As Waivers Of Adhesion, Charles E. Maclean

Cleveland State Law Review

Digital giants, enabled by America’s courts, Congress, and the Federal Trade Commission, devise click-through, clickwrap, browsewrap, "I Agree" waivers, and other legal fictions that purport to evidence user "consent" to consumer privacy erosions. It is no longer enough to justify privacy invasions as technologically inevitable or as essential to the American economy. As forced consent is no consent at all, privacy policies must advance with the technology. This article discusses adhesion waivers, the potential for FTC corrective action, and a comparison to privacy policies of the European Union.

Social Data Discovery And Proportional Privacy, Agnieszka Mcpeak

Cleveland State Law Review

Social media platforms aggregate large amounts of personal information as "social data" that can be easily downloaded as a complete archive. Litigants in civil cases increasingly seek out broad access to social data during the discovery process, often with few limits on the scope of such discovery. But unfettered access to social data implicates unique privacy concerns—concerns that should help define the proper scope of discovery.

The Federal Rules of Civil Procedure, as amended in 2015, already contain the tools for crafting meaningful limits on intrusive social data discovery. In particular, the proportionality test under Rule 26 weighs the burdens …

Self-Driving Cars: Autonomous Technology That Needs A Designated Duty Passenger, Michelle L.D. Hanlon

Barry Law Review

No abstract provided.

Commercial Creations: The Role Of End User License Agreements In Controlling The Exploitation Of User Generated Content, 16 J. Marshall Rev. Intell. Prop. L. 382 (2017), Neha Ahuja

UIC Review of Intellectual Property Law

This article considers the current licensing regime used to control the exploitation of copyright protected works within the online interactive entertainment sector—particularly virtual worlds including multiplayer online games—to further author new copyrightable works. This article aims to identify the gaps that have arisen on account of the nature of these subsequently authored works and the potential for their exploitation under the said licensing regime. Users and the proprietors of virtual worlds often end up in conflict over the monetization and commercialization of user generated content on account of contradictory yet overlapping rights created by copyright law when controlled by contract …

Blocking Ad Blockers, 16 J. Marshall Rev. Intell. Prop. L. 272 (2017), Tyler Barbacovi

UIC Review of Intellectual Property Law

The prevalence of ad blocking software (software that prevents the loading of web based advertisements) is a growing problem for website owners and content creators who rely on advertising revenue to earn money. While the number of ad block users continues to increase, there has thus far been no significant legal challenge to ad blocking in the United States. This comment examines how a website owner, through a combination of technological improvements and the anti-circumvention provisions of the Digital Millennium Copyright Act, could successfully raise a legal challenge against the purveyors of ad blocking software.

Fetishizing Copies, Jessica Litman

Book Chapters

Our copyright laws encourage authors to create new works and communicate them to the public, because we hope that people will read the books, listen to the music, see the art, watch the films, run the software, and build and inhabit the buildings. That is the way that copyright promotes the Progress of Science. Recently, that not-very-controversial principle has collided with copyright owners’ conviction that they should be able to control, or at least collect royalties from, all uses of their works. A particularly ill-considered manifestation of this conviction is what I have decided to call copy-fetish. This is the …

Disruptive Platforms, Margot Kaminski

Publications

No abstract provided.

Trusting Big Data Research, Neil M. Richards, Woodrow Hartzog

Scholarship@WashULaw

Although it might puzzle or even infuriate data scientists, suspicion about big data is understandable. The concept doesn’t seem promising to most people. It seems scary. This is partly because big data research is shrouded in mystery. People are unsure about organizations’ motives and methods. What do companies think they know about us? Are they keeping their insights safe from hackers? Are they selling their insights to unscrupulous parties? Most importantly, do organizations use our personal information against us? Big data research will only overcome its suspicious reputation when people can trust it.

Some scholars and commentators have proposed review …

The Skeleton Of A Data Breach: The Ethical And Legal Concerns, Hilary G. Buttrick, Jason Davidson, Richard J. Mcgowan

Richmond Journal of Law & Technology

After over thirty data breaches spanning the third and fourth quarter of 2012, Forbes magazine labeled the summer of 2012 as “The Summer of the Data Breach.” Four years later, businesses across multiple industries have suffered brand-image damage and paid millions of dollars in remedial expenses; we are living in the era of the mega breach. In 2014, companies such as Target, Home Depot, JP Morgan Chase, Anthem, Sony, UPS, Jimmy John’s, Kmart, Neiman Marcus, Community Health Systems, and the White House suffered data breaches. The Home Depot breach alone resulted in the loss of “56 million credit card accounts,” …

“Hello…It’S Me. [Please Don’T Sue Me!]” Examining The Fcc’S Overbroad Calling Regulations Under The Tcpa, Marissa A. Potts

Brooklyn Law Review

Americans have received unwanted telemarketing calls for decades. In response to a rapid increase in pre-recorded calls made using autodialer devices, Congress enacted the Telephone Consumer Protection Act (TCPA) in 1992. The TCPA imposes restrictions on calls made to consumers’ residences and wireless phones using autodialer devices, even if they are not telemarketing calls. Congress appointed the Federal Communications Commission (FCC) to prescribe rules and regulations to enforce the TCPA. In 2015, the FCC released an order that defined autodialer more broadly under the statute. Consequently, devices that have the potential to become autodialers in the future, even if they …

Like A Bad Neighbor, Hackers Are There: The Need For Data Security Legislation And Cyber Insurance In Light Of Increasing Ftc Enforcement Actions, Jennifer Gordon

Brooklyn Journal of Corporate, Financial & Commercial Law

Privacy has come to the forefront of the technology world as third party hackers are constantly attacking companies for their customers’ data. With increasing instances of compromised customer information, the Federal Trade Commission (FTC) has been bringing suit against companies for inadequate data security procedures. The FTC’s newfound authority to bring suit regarding cybersecurity breaches, based on the Third Circuit’s decision in FTC v. Wyndham Worldwide Corp., is a result of inaction—Congress has been unable to pass sufficient cybersecurity legislation, causing the FTC to step in and fill the void in regulation. In the absence of congressional action, this self-proclaimed …

Exporting Internet Law Through International Trade Agreements: Recalibrating U.S. Trade Policy In The Digital Age, Markham C. Erickson, Sarah K. Leggin

Catholic University Journal of Law and Technology

No abstract provided.

Wearable Devices As Admissible Evidence: Technology Is Killing Our Opportunity To Lie, Nicole Chauriye

Catholic University Journal of Law and Technology

No abstract provided.

The Erosion Of Autonomy In Online Consumer Transactions, Eliza Mik

Research Collection Yong Pung How School Of Law

Online businesses influence consumer behaviour by means of a wide range of technologies that determine what information is displayed as well as how and when it is displayed. This creates an unprecedented power imbalance between the transacting parties, raising questions not only about the permissible levels of procedural exploitation in contract law, together with the adequacy of existing consumer protections but also about the impact of technology on consumer autonomy. There is, however, no single technology that threatens the latter. It is the combined, mutually-enforcing effect of multiple technologies that influence consumer choices at different stages in the transacting process, …

Smart Washers May Clean Your Clothes, But Hacks Can Clean Out Your Privacy, And Underdeveloped Regulations Could Leave You Hanging On A Line, 32 J. Marshall J. Info. Tech. & Privacy L. 259 (2016), Nikole Davenport

UIC John Marshall Journal of Information Technology & Privacy Law

A house is equipped with a smart clothes washer, an intelligent HVAC system and a video enabled home security system, all running through the home network - it reduces the noise by doing laundry when no one is at home, saves energy costs by automatically changing the temperature depending who is in a room, lets the owner remotely see the kids walk in the door after school, and keeps the house safe - the owner is maximizing the use of the Internet of Things (“IoT”) devices (i.e. a network of everyday objects connected to the Internet and to each other). …