UNITED STATES: The FTC has taken a significant step towards protecting consumers from cross-border fraud, deception, and other illegal practices by signing a cooperation agreement with consumer protection authorities from Chile, Colombia, Mexico, and Peru. The multilateral memorandum of understanding (MMOU) promotes cooperation across Latin America, including information-sharing to further investigations and policy development, as well as other types of assistance on cross-border enforcement matters.
The MMOU offers a blueprint for extending cooperation even further through the region by providing a mechanism for others to join this MOU, which will bolster efforts to fight fraud wherever it might occur. Low-cost online communications allow scammers to target consumers regardless of where they live. The increasingly global nature of commerce and fraud poses an enforcement challenge for consumer protection authorities around the world.
From 2019 to 2022, fraud reports against companies in these Latin American countries more than doubled, from 6,103 to 12,869. At the same time, total losses reported by consumers skyrocketed from $39.4 million in 2019 to $237.9 million in 2022. Reports about online shopping were the top complaint during this same period, with losses increasing from $3.8 million in 2019 to $49.5 million in 2022. Social media was the top contact method consumers cited at 41 percent of reports in 2022.
The MMOU encourages participants to share complaints submitted by consumers, provide investigative assistance, coordinate enforcement actions against cross-border violations of law, provide other practical case assistance, participate in econsumer.gov, and cooperate on non-investigatory matters such as exchanging approaches to consumer protection policy issues and participating in staff exchanges, joint training programs, and workshops.
The FTC and consumer protection authorities in these countries agreed to cooperate in investigations related to violations of consumer protection laws. Notably, the MMOU includes a mechanism for allowing other consumer protection authorities to join in the future.
The FTC’s Office of International Affairs lead staffer on this matter is Michael Panzera. The Commission voted 4-0 to authorize the FTC Chair to sign the MOU. The Commission vote closed on a date prior to Commissioner Christine S. Wilson’s departure from the agency.
In conclusion, the FTC’s partnership with consumer protection authorities from Chile, Colombia, Mexico, and Peru is a significant step towards protecting consumers from cross-border fraud. The MMOU promotes cooperation across Latin America, including information-sharing to further investigations and policy development, as well as other types of assistance on cross-border enforcement matters.
 has signed a multilateral memorandum of understanding (MMOU) with consumer protection authorities from Chile, Colombia, Mexico, and Peru to combat fraud both inside and outside the United States. The MMOU promotes cooperation across Latin America, including information-sharing to further investigations and policy development, as well as other types of assistance on cross-border enforcement matters.){kind=link}