The Consumer Financial Protection Bureau (CFPB) ordered federal supervision of Google on Friday (Dec. 6) after a contested designation.
The regulator published an order establishing supervisory authority over Google Payment Corp., saying that this is its second supervisory designation order in a contested matter, according to a Friday press release.
“While Google Payment Corp. is already subject to CFPB’s enforcement jurisdiction, the CFPB has determined that Google Payment Corp. has met the legal requirements for supervision,” the release said. “The CFPB is making this order public to provide transparency about how it assesses risks using consumer complaints and other factors.”
“Importantly, the CFPB’s order does not constitute a finding that the entity has engaged in wrongdoing,” the release said. “The CFPB’s order does not require the CFPB to conduct a supervisory examination.”
Reached by PYMNTS, a Google spokesperson said in an emailed statement that Google is suing the CFPB and Rohit Chopra, in his official capacity as director of the CFPB, over this matter.
“This is a clear case of government overreach involving Google Pay peer-to-peer payments, which never raised risks and is no longer provided in the U.S., and we are challenging it in court,” José Castañeda, a Google spokesperson, said in the statement.
The CFPB said in its press release that it is responsible for supervising a wide range of financial firms, including nonbank entities, to ensure they are complying with federal consumer financial protection laws; that it must issue a notice to an entity not currently subject to a supervisory examination; and that the entity can either consent to supervision or contest the notice.
“Typically, the notices have pointed to consumer complaints and other indicators of risk to consumers,” the release said. “Supervisory exams are a confidential process that help companies identify and rectify potential violations of law. Most entities have decided to consent to supervision.”
It was reported in November that the CFPB aimed to place Google under formal federal supervision.
The Washington Post reported Nov. 14 and said in a post on X that the move “could subject the technology giant to the regular inspections and other rigorous monitoring that the government imposes on major banks.”