CFPB Uses Vicarious Liability in Telecom Industry

Take a look at the latest news announcing Consumer Financial Protection Bureau (CFPB) lawsuit against Sprint.

“Sprint outsourced payment processing for these digital purchases to vendors called ‘billing aggregators’ without properly monitoring them. The lack of oversight gave aggregators near unfettered access to consumers’ wireless accounts.” – CFPB

It appears that the CFPB has officially proven their direct interest, and influence, in consumer protection within the Telecom community. While it is arguable that the CFPB has direct jurisdiction over the Telecom community, it is clear that vicarious liability is, or will be, a focal point now and into the future. It looks as though CFPB is adjusting the rules a bit in the game of consumer-related outsourcing in general!

 

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