Existing law, the California Consumer Financial Protection Law, requires the Department of Financial Protection and Innovation to, among other things, regulate the offering and provision of consumer financial products or services under California consumer financial laws and exercise nonexclusive oversight and enforcement authority under California consumer financial laws.
This bill would require a business that offers a digital wallet to users in the state to take certain actions relating to ensuring the security of the digital wallet, including requiring users to enable two-factor authentication for use before any transaction can be completed. The bill would define "digital wallet" to mean a digital payment application that allows a user to make a consumer transaction.
This bill would impose a civil penalty of $5,000 per day of noncompliance, to be collected in an action brought by the department or the Attorney General, as specified.