ECOA

FloatMe claimed to rescue consumers struggling to keep their heads above water, but left many without a lifeline

• For consumers already underwater financially and desperate for just $50, cash advance company FloatMe’s services turned out to be more sink than swim.
• In addition to $3 million in consumer redress and provisions that will change how FloatMe does business in the future, the settlement includes a provision specifically prohibiting deceptive claims about the use of artificial intelligence, algorithms, or machine learning.

• FloatMe advertises that consumers can “get up to $50 instantly,” suggesting that the company targeted people struggling to make ends meet.
• But consumers who tried to get $50 rarely got even that much from FloatMe.
• What they did get was a raft of undisclosed fees and hassles when they tried to cancel.
• Otherwise they had to wait three days – a catch the FTC says FloatMe didn’t clearly disclose up front.
• In other instances, the FTC says FloatMe simply ignored cancellation requests and continued to help themselves to consumers’ bank accounts.

• In addition, the complaint alleges the defendants violated the Equal Credit Opportunity Act by disqualifying people whose income came from public assistance programs.
• In addition to the $3 million financial remedy, the order requires the company to implement a fair lending program similar in form to other FTC actions alleging ECOA violations.
• The action against FloatMe includes compliance lessons for businesses offering similar services, but the advice extends beyond that industry.
• Like any other objective claim, a statement about your company’s use of AI or algorithms requires appropriate substantiation.

• NAIROBI, Kenya, Sept. 6, 2023 /PRNewswire/ -- Today, Africa's leading clean cooking company and carbon project developer, BURN has unveiled its next-generation, tech-enabled electric cooking (e-cooking) product suite.
• These new products will revolutionize cooking across Africa by offering families a more cost-effective and sustainable cooking solution.
• While we know improved cookstoves still have a critical role to play for rural families, the future of clean cooking in Africa is electric," said Peter Scott, Founder and CEO of BURN.
• Africa is uniquely positioned to benefit from affordable electric cooking solutions due to its growing commitment to clean energy.

• Global eClinical Solutions Market, by Pharma and Biopharma Companies, by Region, 2019-2032 (USD Billion)
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• Global eClinical Solutions Market, by Electronic Clinical Outcome Assessment (ECOA), by Region, 2019-2032 (USD Billion)
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• Global eClinical Solutions Market, by Electronic Data Capture (EDC) and Clinical Data Management Systems (CDMS), by Region, 2019-2032 (USD Billion)
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• Global eClinical Solutions Market, by Clinical Trial Management Systems (CTMS), by Region, 2019-2032 (USD Billion)
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• The Federal Trade Commission filed a friend-of-the-court (amicus) brief in the U.S. Court of Appeals for the Seventh Circuit challenging a district court ruling that invalidated a key anti-discrimination rule in the Equal Credit Opportunity Act (ECOA).
• The CFPB alleged that the defendants took steps to discourage Black consumers from applying for loans, violating Regulation B’s anti-discouragement rule.
• The brief notes that the FTC receives thousands of complaints from consumers each year related to discriminatory lending practices.
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