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Does your Marketplace need to be “INFORM-ed” by June 27th? The New INFORM Consumers Act Could Significantly Impact Online Marketplace Operations

May 16 2023

By John ReVeal, Judie Rinearson, and Katie Staba

The Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act (the “INFORM Consumers Act” or “Act”) (https://www.congress.gov/117/bills/s936/BILLS-117s936is.pdf ) which passed on December 29, 2022 will come into effect on June 27, 2023. Originally intended to address increasing consumer complaints about online marketplace purchases of counterfeit or defective products from third party sellers, the Act requires both collection, verification and, in certain cases, disclosure of third party seller information to combat this perceived marketplace unaccountability.

Australia: ASIC revises its IDR reporting framework – are you ready?

May 15 2023

By Daniel Knight and Hugo Chow

All holders of an Australian Financial Services License (AFSL) with a retail client authorisation will need to comply with ASIC’s internal dispute resolution (IDR) reporting framework. Summary reports will need to be provided to ASIC on a 6 monthly basis, highlighting the status of each client complaint. Reporting obligations commence from 1 July 2023 (for reporting in January or February 2024). AFSL holders should put systems in place now to ensure all required information is being captured.

CFTC Chair Asserts Jurisdiction Over Fiat-Based Stablecoins

Mar 13 2023

By Cheryl L. Isaac and Maxwell J. Black

Last week, Commodity Futures Trading Commission (“CFTC”) Chair Rostin Behnam asserted that fiat-based stablecoins (such as USD Coin (USDC), Tether (USDT), and Binance USD (BUSD), all of which are pegged to an underlying fiat currency) should be considered as commodities, subject to the CFTC’s enforcement jurisdiction.

EU/Luxembourg Update: New Blockchain/ DLT Pilot Regime for Financial Instruments Becomes Effective on March 23

Mar 07 2023

By Dr. Jan Boeing and Maxime Barthez[1],

Luxembourg and the EU have taken an important step forward in the area of blockchain and Distributed Ledger Technology (“DLT”). With a view to removing regulatory hurdles to the issuance, trading and post-trading of many financial instruments for which an EU regulatory framework already exists (such as the regulation of transferable securities, units in collective investment undertakings and derivatives under MiFIR, MiFID II and CSDR[2]), the EU has put in place the DLT Pilot Regime through Regulation (EU) 2022/858 of 30 May 2022. The new DLT Pilot Regime applies (with certain limitations) to all (traditional) financial instruments within the meaning of MiFID II[3] that are issued, recorded, transferred and stored using blockchain or distributed ledger technology (“DLT Financial Instruments”).

In a Rare Decision On Abandoned Property Law, The US Supreme Court Rules Against Delaware

Mar 06 2023

By Judie Rinearson, Jennifer Crowder, and Jeremy McLaughlin

On February 28, 2023, the US Supreme Court issued its decision in the abandoned property lawsuit, Delaware v. Pennsylvania (see https://www.supremecourt.gov/opinions/22pdf/145orig_kjfl.pdf)

The question addressed by the Court focused on which state was entitled to collect unclaimed property, which arose from two financial products sold by banks on behalf of Moneygram: Agent Checks and Teller’s Checks (collectively, the “Checks”).

AUSTRALIA: Treasury Releases Token Mapping Consultation Paper

Feb 23 2023

By Daniel Knight and Oliver Herrmann

New licensing requirements for crypto service providers are coming, following a series of consultations launched last week by Treasurer, Jim Chalmers. The Government approach focuses on strengthening enforcement, bolstering consumer protection and ultimately establishing a new licensing framework.

High-Level Summary: Solving Common Failures in NFT Licensing

Feb 14 2023

By Drew Hinkes, Elizabeth Thomsen, Josh Durham

As blockchain and nonfungible tokens (NFTs) are still new technologies, their legal infrastructure is still developing, creating potential vulnerabilities. Three such vulnerabilities were exposed in our previous article, available here. We have now issued a follow-up Alert that explores solutions to such licensing failures. This blog is a high-level summary; the full alert can be found here.

Crypto Platform Kraken Pays $30 Million and Ceases Staking Services to Settle SEC Charges

Feb 13 2023

By Drew Hinkes, Carly Howard, and Judie Rinearson

The Securities and Exchange Commission (SEC) announced a settlement with the digital assets/cryptocurrency exchange Kraken whereby Kraken agreed to cease offering or selling securities through its crypto asset staking services, and agreed to pay a penalty of $30 million (comprising disgorgement, prejudgment interest, and civil penalties).

The CFPB Proposes New Credit Card Late Fee Limits

Feb 09 2023

By John ReVeal

On February 1, 2023, the CFPB proposed new rules to reduce the late fees that credit card issuers may charge to consumers (the “Proposed Rules”). The CFPB refers to current late fees as “over the top” and “exorbitant.” The CFPB indicates that it believes it has the authority to limit late fees under the CARD Act of 2009, which amended the Truth in Lending Act to require that late fees and other penalty fees be “reasonable and proportional to” the consumer’s violation of the cardholder agreement.

“MetaBirkin” NFT Maker Liable in TM Dispute

Feb 08 2023

By Terrance D. Roberts

On February 8, 2023, a Manhattan federal jury found Mason Rothschild liable for trademark infringement for his non-fungible tokens (“NFTs”) called ‘MetaBirkins’. After only 3 days of deliberation, the 9 person jury sided with Hermѐs International and found Rothschild liable for trademark infringement, trademark dilution, and for unlawfully cybersquatting on the domain name MetaBirkins.com.

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