Consumer protection

Alabama man arrested for hacking SEC’s X account

A 25-year-old man from Alabama has been arrested for hacking the US Securities and Exchange Commission’s X account in a scheme to manipulate Bitcoin prices. The incident, which occurred in January, involved a false post on the SEC’s account claiming the approval of Bitcoin exchange-traded funds, briefly causing Bitcoin’s price to rise by $1,000. The SEC swiftly deleted the post and denied the message, but the hack sparked criticism over security vulnerabilities on X.

The suspect, Eric Council Jr., used a SIM-swapping technique to access the account and later received Bitcoin as payment for his involvement in the hack. Following the incident, he reportedly searched online for information on how to avoid FBI detection. Council now faces charges of conspiracy to commit aggravated identity theft and access device fraud.

The SEC expressed its gratitude to law enforcement for their prompt action in the case, while the incident reignited concerns over the security of social media platforms, particularly since X’s acquisition by Elon Musk.

US adopts ‘click to cancel’ rule for easier subscription management

The United States Federal Trade Commission (FTC) has introduced a new ‘click to cancel‘ rule, designed to simplify the process of ending subscriptions. The rule mandates that businesses must make it just as easy for consumers to cancel a subscription as it is to sign up for one, and requires customer consent before renewing subscriptions or converting free trials into paid services.

Under the new regulations, businesses will no longer be allowed to force customers to navigate chatbots or agents to cancel subscriptions initiated via an app or website. The rule will take effect in about six months and aims to save consumers time and money by eliminating unnecessary hurdles. For subscriptions made in person, companies must provide an option to cancel by phone or online.

The FTC has previously sued Amazon and Adobe for making it difficult for consumers to cancel subscriptions. Amazon was accused of using misleading website designs to push people into automatic Prime renewals, while Adobe allegedly imposed hidden fees and unclear cancellation terms. Both companies have rejected the claims.

Similar measures have also been adopted in the United Kingdom. The Digital Markets, Competition and Consumers Act 2024 ensures that businesses must give clear information to customers before they enter into subscription agreements, and make it easier for them to cancel or end contracts.

EU decision gives X flexibility amid big tech regulations

The European Commission has determined that X, Elon Musk’s social media platform, does not qualify as a ‘gatekeeper’ under the Digital Markets Act (DMA), exempting it from additional compliance obligations. The Commission’s decision follows a May investigation initiated after X asserted it was not a key intermediary between businesses and consumers. While X meets user thresholds and turnover criteria, the Commission clarified that it does not significantly connect business users with end consumers.

Under the DMA, which took effect in 2023, companies must have at least 45 million end users and 10,000 business users in Europe, along with an annual turnover of €7.5 billion over the last three years, to be classified as gatekeepers. Major tech firms like Google, Amazon, Apple, Meta, Microsoft, and TikTok’s parent company ByteDance have already received gatekeeper status, imposing on them strict regulations to ensure fair competition and consumer choice.

Apple has faced penalties under the DMA, with the European Commission ruling in June that its App Store practices violated the regulations. While several companies, including Apple and Meta, have appealed their gatekeeper designations, X remains unaffected by these rules for now. This decision allows X more operational flexibility compared to its competitors, although it indicates that the Commission is closely monitoring the interactions between large platforms, businesses, and consumers in the digital marketplace.

US FCC investigates telecom firms over data cap policies

The Federal Communications Commission (FCC) has announced a formal inquiry into the use of data caps by telecom companies. The investigation aims to assess how these caps impact consumers and market competition, particularly in an increasingly connected world.

FCC Chair Jessica Rosenworcel expressed concerns about the effects of limiting internet usage. She pointed out that data caps could harm small businesses by cutting off access to customers, penalise low-income families with additional fees, and limit essential communication tools for people with disabilities.

Rosenworcel noted that, for many Americans, rationing internet use would be unthinkable. However, millions of people across the country constantly face limitations on their data usage, which may hinder their ability to stay connected.

The inquiry is expected to explore whether these caps unfairly limit consumer choice and what impact they have on competition among telecom providers.

Kenya strengthens ICT sector through new regulatory framework and ICT Authority Bill 2024

The Kenya Communications Authority (CA) has mandated that all dealers of ICT equipment, including manufacturers, vendors, importers, and service providers, undergo a type approval process before connecting devices to the Public Switched Telecommunication Network (PSTN).

That requirement applies to a wide range of devices, such as smartphones, routers, modems, tablets, vehicle trackers, and other networking equipment, thus ensuring that these products meet national and internationally recognised standards. The directive aims to safeguard consumer health, uphold public interest, secure telecommunications networks within the country and enforce compliance through legal penalties.

Specifically, non-compliance can lead to fines reaching up to Ksh5 million ($38,759) and prison sentences of up to three years for serious infractions, while lesser offences carry penalties of up to Ksh250,000 ($1,937). Furthermore, the CA’s regulations address cybercrime by equipping authorities with the means to detect, prevent, investigate, and prosecute computer-related offences, thereby contributing to a safer digital environment in Kenya.

Additionally, to boost revenue, the Kenyan government plans to block devices imported without proper tax documentation from network activation, specifically targeting phones and other ICT equipment lacking tax records. That move strengthens regulatory control over ICT imports, promoting fair taxation and compliance with local laws.

Moreover, the proposed ICT Authority Bill 2024, introduced in May, will require ICT operators to secure operational licenses, further enhancing the quality, security, and efficiency of ICT services in Kenya. Ultimately, the bill aims to support Kenya’s digital economy and ensure that ICT infrastructure aligns with national development goals.

US FCC to implement new rules for robocalls and robotexts

The US Federal Communications Commission (FCC) has announced new rules to enhance consumer protections against unwanted robocalls and robotexts, which are increasingly becoming a nuisance for individuals across the nation. Set to take effect on 11 April 2025, these guidelines will allow consumers to revoke their consent for receiving such communications in ‘any reasonable way.’

Specifically, this includes using automated opt-out mechanisms during calls, replying ‘stop’ to text messages, or visiting a designated website or phone number provided by the caller. Moreover, companies must process opt-out requests within a maximum of 10 business days from receipt, and they can send a one-time confirmation text to acknowledge the opt-out request, provided that it does not contain any marketing content.

These rules are particularly significant for the mortgage industry, which has faced criticism for practices like ‘trigger leads,’ where companies purchase consumer information for solicitation. Consequently, by incorporating the Homebuyers Privacy Protection Act of 2024 into the National Defense Authorization Act, the FCC reinforces its commitment to consumer privacy and trust in the mortgage sector, encouraging companies to adopt ethical marketing strategies.

Overall, these new measures represent significant steps toward empowering consumers and enhancing their overall experience with telecommunications services. Implementing these guidelines holds companies accountable for adhering to updated regulations, ensuring that consumers can effectively manage their communication preferences. The proactive approach addresses consumer concerns and fosters a more transparent and trustworthy environment in electronic communications.

Europe prepares for stablecoin regulations with MiCA

The European Union’s Markets in Crypto-Assets Regulation (MiCA) is poised to play a crucial role in the global regulation of stablecoins. According to Binance, the comprehensive framework will set clear rules for stablecoin issuance, reserve management, and redemption, enhancing market stability and consumer protection. MiCA’s approach will also serve as a global benchmark, helping other jurisdictions align their regulatory efforts for cross-border compatibility.

Although MiCA is expected to bring more certainty to the crypto industry, its strict implementation could challenge smaller firms and decentralised finance (DeFi) protocols. The legislation may require them to meet the same licensing and Know Your Customer (KYC) standards as traditional financial services, adding significant compliance burdens. The framework also includes a ban on algorithmic stablecoins to prevent collapses like that of Terra USD (UST).

As MiCA comes into effect on 30 December, major financial institutions like Societe Generale are already preparing MiCA-compliant digital assets. The banking group is partnering with Bitpanda to launch the EUR CoinVertible stablecoin.

Binance and Delhi police expose $100,000 lost in solar scam

Binance has partnered with the Delhi Police to uncover and dismantle a $100,000 scam tied to India’s renewable energy goals. The fraudulent scheme, operated by ‘M/s Goldcoat Solar,’ falsely claimed it had official backing to help expand the nation’s solar power capacity. Promising high returns, the scammers duped investors by aligning their activities with India’s green energy ambitions.

Using social media to impersonate officials and create fake earnings reports, the syndicate built trust with victims, while concealing their true identities through multiple SIM cards registered under unsuspecting individuals. Binance aided the investigation by providing crucial analytical support to trace the funds, which had been laundered through bank accounts and converted into cryptocurrency.

The crackdown comes after Binance’s recent re-entry into India, where the exchange is now registered with the Financial Intelligence Unit, ensuring compliance with local regulations amid ongoing efforts to regulate crypto platforms.

India investigates WhatsApp’s privacy policy

WhatsApp is facing potential sanctions from India’s Competition Commission (CCI) over its controversial 2021 privacy policy update, which has raised significant privacy concerns. The CCI is reportedly preparing to take action against the messaging platform, owned by Meta, for allegedly breaching antitrust laws related to user data handling. The policy, which allows WhatsApp to share certain user data with Meta, has faced widespread criticism from regulators and users who view it as intrusive and unfair.

The CCI’s investigation suggests that WhatsApp’s data-sharing practices, particularly involving business transaction data, may give Meta an unfair competitive advantage, violating provisions against the abuse of dominance. A draft order has been prepared to penalise both WhatsApp and Meta, as the CCI’s director general has submitted findings indicating these violations.

In response, WhatsApp stated that the case is still under judicial review and defended its privacy policy by noting that users had the choice to accept the update without losing access to their accounts. If sanctions are imposed, this could represent a pivotal moment in India’s efforts to regulate major tech firms and establish precedents for the intersection of privacy and competition laws in the digital age.

Reliance Jio seeks revision of spectrum rules for fair competition in India

Reliance Jio has requested Union Minister Jyotiraditya Scindia to intervene with the Telecom Regulatory Authority of India (TRAI) to revise its consultation paper on spectrum allocation rules. The operator emphasises the urgent need to establish a level-playing field between terrestrial and satellite service providers, especially with new entrants like Starlink and Amazon’s Kuiper seeking to enter the Indian market.

Jio warns that Trai’s failure to address competitive dynamics could compromise fair competition and lead to legal challenges, as it may violate Supreme Court rulings emphasising transparency and equity in spectrum allocation. The telecom operator insists that comprehensive assessments of market demand and technological advancements are essential for ensuring fair treatment of all service providers in the allocation process.

Furthermore, Jio criticises the administrative allocation process adopted by the Department of Telecom and Trai for satellite services in India, arguing that it needs more thorough analysis and stakeholder input. The company firmly rejects any preferential treatment for satellite communication services, asserting that such an approach undermines the principles of non-discrimination and fairness.

Jio calls for spectrum assignment policies to align with established legal standards, ensuring that all players, regardless of whether they provide terrestrial or satellite services, are subject to the same fair and transparent regulatory framework.