Mark Budnitz’s brief essay on problems in modern consumer payments

Here, in the Los Angeles Lawyer (you might have to scroll to page 28). Among the topics discussed are FedNow and cryptocurrencey. Excerpt:

Ominously, the introduction of consumer-facing chat-bots and other artificial intelligence devices has provided fraudsters with new and improved tools for deceiving consumers. At the same time, consumer transactions now routinely involve “click to accept” agreements entered into online. Sellers’ online agreements fail to present terms in a manner that alerts consumers about important terms and are not designed to obtain meaningful consent to those terms.

The law has not been modernized to take these developments into account, resulting in serious gaps. As a result, when payment transfers do not occur as consumers intended, they can be left with no remedy. Recent proposals to require improved disclosure of terms prior to obtaining the consumer’s consent are not adequate. Thus, these gaps need to be filled to better protect consumers and provide greater clarity for both consumers and businesses.

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