A coalition of consumer groups, including members of the Consumer Federation of America, Consumer Action and Consumers Union (the nonprofit publisher of Consumer Reports magazine), are urging caution as contactless payment technology is adopted. The group’s concerns are voiced in comments submitted to the FTC on Friday, in preparation for a town hall meeting on the subject scheduled for July 24 in Seattle.
The groups acknowledge many advantages of contactless payments, including faster transactions, easier record-keeping and the potential convenience of a cashless society. However, the group fears that important consumer protections may be neglected.
“As is often the case, law and public policy have not kept up with innovations in technology and business to ensure that consumers can enjoy the benefits of contactless payment with the confidence that they have strong legal protections should problems arise,” the coalition’s statement says.
Among the concerns the group raises are privacy issues stemming from the possibility that payments made via mobile devices could create a map of a consumer’s activities; security issues arising from the theft of such devices; and ensuring a consumer’s dispute rights over charges made on such devices.
The group also offers possible solutions to these problems, most resembling the protections currently used with more conventional payment methods, including pin numbers and daily spending limits. ![[end]](/resources/bullet/archive-4.gif)
