Dear Readers,
Rohit Chopra — President Joe Biden’s nominee to replace Consumer
Financial Protection Bureau (CFPB) Director Kathy Kraninger – has
earned the reputation as someone who is not afraid to go after large
corporations for wrongdoing.
As one of five Federal Trade Commission (FTC) members, Chopra is widely
known as the consummate consumer advocate.
He recently showed a glimpse of his leadership style after the FTC
sanctioned Amazon.com for expanding its business empire by allegedly
cheating its Flex package delivery service workers out of more than $60
million in tips.
In a Feb. 2 statement, Chopra chided the FTC for failing to do enough to
prevent such criminal conduct.
“The commission has historically taken a lax approach to worker abuse,
entering no-consequences settlements even in naked wage-fixing matters
that are criminal in nature,” Chopra said. “Despite broad pronouncements
about a commitment to policing markets for anticompetitive conduct that
harms workers, the FTC has done little. I hope that today’s action turns the
page on this era of inaction.”
Chopra also noted the commission can also codify existing precedent into a
rulemaking to trigger penalties and damages for this type of fraud.
“Companies should succeed only when they compete, not when they cheat or
abuse their power,” he said. “While Amazon.com is one of the largest, most
powerful, and most feared firms in the world, the company cannot be above
the law. Regulators and enforcers in the United States and around the globe
can no longer turn a blind eye.”
If confirmed by the Senate as expected, could Chopra bring a return to
regulation by enforcement at the CFPB? Meanwhile, acting CFPB Director
Dave Uejio recently announced the bureau is actively recruiting attorneys
to help with “vigorous oversight of all applicable federal laws.”
Stay tuned.
Sincerely,
Tracey Read
Editor
RESPA News