(BenefitsPro) - SEC Chairman Gary Gensler questioned Tuesday when design elements and psychological nudges associated with digital engagement platforms, or DEPs, “cross the line” and become recommendations.
“The answer to that question is important, because that might change the nature of the platform’s obligations under the securities laws,” Gensler said Tuesday at the Practising Law Institute’s SEC Speaks event.
“Even if certain practices might not meet the current definition of recommendation, I believe they raise a question as to whether there are some appropriate investor protection guardrails to consider, beyond simply the application of antifraud rules,” Gensler said.
These modern DEP features, Gensler continued, “go beyond game-like elements, or what is sometimes called ‘gamification.’ They encompass the underlying predictive data analytics, as well as a variety of differential marketing practices, pricing and behavioral prompts.”
SEC Chairman Gary Gensler questioned Tuesday when design elements and psychological nudges associated with digital engagement platforms, or DEPs, “cross the line” and become recommendations.
“The answer to that question is important, because that might change the nature of the platform’s obligations under the securities laws,” Gensler said Tuesday at the Practising Law Institute’s SEC Speaks event.
“Even if certain practices might not meet the current definition of recommendation, I believe they raise a question as to whether there are some appropriate investor protection guardrails to consider, beyond simply the application of antifraud rules,” Gensler said.
These modern DEP features, Gensler continued, “go beyond game-like elements, or what is sometimes called ‘gamification.’ They encompass the underlying predictive data analytics, as well as a variety of differential marketing practices, pricing and behavioral prompts.”
