Consumer Group Calls
for M-Commerce Protections
Sept. 2, 2010
The consumer activist group Consumers Union recently called
on federal regulators to ensure that consumers who use new mobile payment
services are protected from fraud or errors made by merchants and processors. “As
mobile payments systems come to the U.S., product providers and regulators need
to make sure that they are at least as safe for consumers to use as traditional
credit card and debit card payments,” said Michelle Jun, staff attorney for
Consumers Union. “It is critical that mobile payment systems are covered by
strong rules to protect consumers from losing money because of fraud, processor
error or a dispute with a retailer.” The group said the various types of cards
and payment methods attached to mobile devices make it difficult for consumers
to determine what protections apply to new payment services. “Consumers should
not be expected to figure out what protections apply to each competing new
payments venture,” said Jun. “Regardless of the technology or business
organization involved, the same high level of consumer protections should be
guaranteed by law and contract for any payment service. Now that mobile payment
ventures are emerging in the U.S., it’s time to harmonize and extend consumer
protections for all payment services.”