Google is gearing up to challenge the US Consumer Financial Protection Bureau (CFPB) in court over its plans to establish supervisory authority over Google Payment Corp.
The CFPB’s decision to include Google Pay under its oversight stems from consumer complaints regarding the company’s error resolution and fraud prevention practices. The regulatory agency aims to investigate the potential risks posed to consumers by Google’s payment operations.
Although the order does not imply any wrongdoing on Google’s part, the tech giant has quickly filed a lawsuit contesting the agency’s authority. The suit argues that such supervision is unwarranted, with company representatives labeling the consumer complaints referred to by the CFPB as “unsubstantiated.”
Google spokesman Jose Castaneda stated, “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 US, and we are challenging it in court.”