On April 26, 2012, the Federal Trade Commission (FTC) held a public workshop entitled “Paper, Plastic . . . or Mobile?” to examine the use of mobile payments in the marketplace and the impact of emerging technologies on consumers. Three consumer issues surrounding mobile payments were highlighted: (1) the lack of clear consumer redress and dispute resolution processes, (2) data security, and (3) consumer privacy.
A Keley Drye client advisory, “Insights from the FTC’s Mobile Payments Workshop: Potential Roadmap for Industry Best Practices,” summarizes the FTC’s workshop and the discussion on these three issues. For industry participants that are involved in the mobile payments ecosystem – or wish to be – having a clear understanding of these components and emerging best practices makes good business sense, and can help keep a company from becoming an enforcement or litigation target.