U.S. Regulator Orders Supervision Of Google Payment; Company Responds With Lawsuit

The Consumer Financial Protection Bureau (CFPB) announced that it will place Google Payment Corp., the payment arm of the tech giant, under federal supervision due to concerns over consumer risks.

The agency accused Google Payment of failing to investigate erroneous transfers and other potential violations.

Google immediately challenged the decision in court, setting up a high-profile dispute in the final weeks of President Joe Biden’s administration, Rami Ayyub reported for Reuters.

The CFPB based its decision on nearly 300 consumer complaints, including allegations of fraud, scams, and unauthorized transactions.

The agency accused Google Payment of failing to investigate erroneous transfers and other potential violations, emphasizing that its oversight authority extends even to discontinued services.

Google dismissed the claims as unfounded, arguing in its lawsuit that the complaints pertained to a product no longer available. "A product that no longer exists is incapable of posing such risk," the company asserted.

This decision, part of a broader Biden-era focus on regulating Silicon Valley financial services, could be revisited when President-elect Donald Trump takes office in January.