Tech Groups Sue CFPB Over Payment Rule

NetChoice and TechNet, two prominent technology trade associations, have filed a lawsuit against the U.S. Consumer Financial Protection Bureau (CFPB) to block a new rule that extends oversight to non-bank entities offering digital wallets and payment apps like Apple Pay and Venmo. The rule, which applies to companies processing at least 50 million transactions annually, aims to ensure that users receive protections against fraud and privacy violations similar to those enjoyed by bank customers. However, the trade groups argue that the CFPB lacks the authority to impose such regulations and failed to identify significant consumer risks that justify the rule. They characterize the CFPB's actions as an