Taken from the briefing Mobile Payments Compliance: Unique Disclosure, Advertising, and Money Transmission Issues recorded September, 2012.
There has been considerable growth in the mobile payment space over the last year or so. This One-Hour Briefing panel will examine unique compliance issues for those involved in mobile payments and will explore a number of compliance issues associated with meeting the requirements of various consumer protection laws in the mobile environment.
Lecture Topics [Total Time: 01:04:48]
- Providing products disclosures and agreements in the mobile environment:
Mobile transactions may necessitate providing disclosures required under federal and state laws. Such disclosures may include those under Regulation E, the E-SIGN Act, and privacy notices under federal and state laws. The provision of notices may introduce compliance issues relating to the smaller screen size and the often complex nature of mobile products, which may involve many parties performing services and sharing information. Other compliance issues include determining which entities involved in the mobile product are financial institutions, who has a customer relationship with the user and who owns information involved in the product.
- Advertising on small real estate:
The FTC is currently considering revisions to its Dot Com Disclosures guidance in part to address the unique issues presented by mobile disclosures. The agency also held a workshop in May to examine the challenges of providing compliant advertising and privacy disclosures for mobile products. Several marketing industry groups have also issued or are developing self-regulatory standards for advertising through mobile devices.
- Money transmission:
Nearly all states have laws requiring a license to engage in money transmission, usually defined to include receiving funds from someone for the purpose of delivering the funds to another person or at another time. Penalties for failure to obtain a license can be severe and the licensing process and ongoing compliance can be burdensome. Those obtaining money transmitter licenses may also face increased anti-money laundering compliance requirements. Depending on the nature of a product, licensure as a currency exchange may also be required in some states.
Presentation Material
- Mobile Payments Compliance: Unique Disclosure, Advertising, and Money Transmission Issues
Margo H. K. Tank, James T. Shreve, Ryan S. Pollard
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