Interactive Counsel

Arent Fox's interactive media law blog - latest news and trends in advertising, data security & privacy, and IP.

Interactive Counsel

Payment Processing, Electronic Fund Transfers & Mobile Payments

Our clients offer consumers some of the most cutting-edge shopping experiences -- both online and through brick and mortar stores. Arent Fox has assisted its clients in issues related to payments initiated by mobile device, telephone and Internet-initiated electronic transfers, preauthorized electronic fund transfers, and the procedures to resolve errors and consumer complaints to help comply with the Electronic Funds Transfer Act (EFTA) and the rules of the National Automated Clearinghouse Association (NACHA).


New Version of Payment Card Information Standards Targets Recent Breach Issues


Costco Looks to Knock Out FACTA Receipt Class Action


Amazon Fights Injunction in FTC Action Over In-App Billing Practices

Practical Guidance

  • In-app purchasing remains a priority for regulators.  
  • Companies with mobile apps should incorporate password protection and informative prompts to obtain informed consent from account owners for in-app purchases.

What the News?


Chips or No Chips? Retailers and Merchants Must Implement New Payment Card Standards or Face Fraud Charges

Major US credit card associations including Visa, MasterCard, American Express, and Discover have set October 1, 2015, as the deadline for merchants to implement the Europay, MasterCard, and Visa (EMV) standards. EMV standards include requirements for physical card terminals and a shift from magnetic stripe cards to chip-embedded cards. In order to comply with these standards, banks have been sending out compliant chip-embedded credit and debit cards to their customers.


California Court Clarifies Scope of Song-Beverly

California’s Song-Beverly Credit Card Act does not prohibit retailers from collecting email addresses after a credit card transaction has been concluded, according to a recent ruling by a California appellate court. The decision provides some welcome clarity for retailers who engage in point of sale data collection.
What is the Song-Beverly Act?


Federal Judge Approves Target’s $10 Million Settlement for Consumer Class Action Lawsuit over 2013 Data Breach

On March 19, 2015, a Minnesota federal judge granted preliminary approval of Target Corporation’s (Target) proposed $10 million settlement of a class action lawsuit, which arose out of a 2013 data breach that compromised personal information of roughly 110 million of Target’s customers. The proposed settlement would pay out $10 million to the plaintiffs and up to $6.75 million in attorney fees. Consumers affected by the breach could be awarded up to $10,000 in damages each if they can prove damages.


Ikea Seeks Class Decertification in ZIP Code Case

What Made News?

Ikea recently argued that a class action filed against it based on alleged violations of California’s Song-Beverly Act should not be maintained. Ikea admits that its sales registers prompt sales associates to collect ZIP codes from consumers, but it argues that associates often bypass the prompt. Because it does not have a policy to collect ZIP codes, Ikea claims that it cannot be held liable for the alleged illegal ZIP code collections.


‘Killing the Password Dead’ and Other Updates in Cybersecurity

The Obama Administration has announced a series of initiatives to address the growing number of data breaches at major retailers. Millions of Americans and thousands of retailers have been the victims of data breaches over the past year, and consumers and legislators alike are increasingly looking for ways to secure sensitive data such as payment card account numbers.


AT&T Mobility to Pay $105 Million in Mobile Cramming Settlement

Yesterday, Federal Trade Commission (FTC) Chairwoman Edith Ramirez, Federal Communications Commission (FCC) Chairman Tom Wheeler, and two state attorneys general representing all 50 states and the District of Columbia held a press conference to announce a significant enforcement action against AT&T Mobility for unlawfully billing customers for unauthorized third-party charges, also known as “cramming.”


Mailin’ It In: The FTC Gives the Mail Order Rule a Makeover

The News

The Federal Trade Commission (FTC) recently announced changes to the “Mail or Telephone Order Merchandise” Rule (a.k.a., the Mail Order Rule) aimed at updating the Rule for the 21st century and easing the costs of compliance. The Rule also got a new name and will now be known as the “Mail, Internet, or Telephone Order Merchandise” Rule. The changes will take effect on December 8, 2014.


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Arent Fox LLP, founded in 1942, is internationally recognized in core practice areas where business and government intersect. With more than 350 lawyers, the firm provides strategic legal counsel and multidisciplinary solutions to clients that range from Fortune 500 corporations to trade associations. The firm has offices in Los Angeles, New York, San Francisco, and Washington, DC.