Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC to host FinTech Forum on crowdfunding and peer-to-peer payments, (Aug 3, 2016)

By Linda O’Brien, J.D., LL.M.

On October 26, the FTC will host its second FinTech Forum which will focus on two topics of increasing interest to consumers: crowdfunding and peer-to-peer payment systems. The event is designed to bring together perspectives from across the landscape of these two growing sectors and will include separate panels exploring each one, according to the Commission’s announcement today.

The FinTech Forum series is part of the FTC’s ongoing work to protect consumers who take advantage of new and emerging financial technology. The FTC kicked off the series on June 9 by discussing marketplace lending, a fast-growing market that facilitates all types of online loans for consumers.

Crowdfunding involves the use of online platforms by individuals and businesses to fund a project or venture by raising money from a large number of people. Consumers who contribute to a crowdfunding campaign may provide money in exchange for a specific deliverable or may simply want to donate money to a specific cause. The FTC brought its first enforcement case in the crowdfunding area in June 2015 against the deceptive tactics of a project creator who raised money from consumers to produce a board game.

Peer-to-peer payment systems allow consumers to engage in financial transactions with other consumers directly, often through mobile devices. Such platforms can make transferring money faster and more convenient for consumers than traditional options.

The FinTech Forum will bring together industry participants, consumer groups, researchers, and government representatives. The forum will examine the various models of crowdfunding and peer-to-peer payments used by companies, the potential benefits to consumers, and possible consumer protection concerns. In addition, the forum will look at how the FTC Act and other existing consumer protection laws might apply to companies participating in these areas.

The forum will be held at the FTC’s Constitution Center offices, 400 7th St. SW, Washington, D.C., and will begin at 1 p.m. A full schedule and other details on the forum will be announced shortly. The event is free and open to the public and no pre-registration is needed.

News: ConsumerProtection FederalTradeCommissionNews