Under the Dodd-Frank Act, what are covered persons or service providers required to avoid?

The correct choice emphasizes that under the Dodd-Frank Act, covered persons or service providers are specifically required to avoid unfair, deceptive, or abusive acts or practices. This regulation is aimed at protecting consumers in financial transactions and ensuring that financial institutions operate fairly and transparently. The statute reflects a strong consumer protection stance, and it establishes a framework for accountability concerning the practices of financial entities.

The designation of "unfair, deceptive, or abusive acts or practices" is central to the Act's mission, as it seeks to promote ethical conduct within the financial industry, thereby ensuring that consumers are not misled or exploited. This focus on fair treatment is significant in maintaining trust in financial markets and institutions.

Other choices, while relevant to general regulatory principles, do not capture the specific focus of the Dodd-Frank Act as it pertains to consumer protection in financial transactions. For instance, while avoiding fraudulent activities is critical in the financial sector, the Dodd-Frank Act does not define its overall purpose around fraud alone. Similarly, while violations of antitrust laws and information gathering tactics may be concerns in the broader context of regulation, they do not specifically align with the consumer protection objectives that are core to the Dodd-Frank legislation.