; or (2) acts or practices by a covered person performing the acts or practices pursuant to and in compliance with a contract with a Federal agency (as defined under section 701(b) of title 5, United States Code). . 204. Clarifying the abusive standard for the Bureau of Consumer Financial Protection Section 1031 of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5531 ) is amended— (1) by redesignating subsections (e) and (f) as subsections (f) and (g); and (2) by striking subsection (d) and inserting the following: (d) Abusive (1) In general The Bureau shall have no authority to declare an act or practice of a covered person abusive in connection with the provision of a consumer financial product or service, unless the act or practice— (A) intentionally and materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service; or (B) takes unreasonable advantage of— (i) a lack of understanding by the consumer with respect to the possible impact, material risks, costs, or conditions of the product or service, or the likelihood of the risks, costs, or conditions of the product or service negatively affecting the consumer; and (ii) the reasonable reliance the consumer places on an affirmative action or representation of such covered person to induce such consumer to rely on such action or representation. (2) Abusive actions An act or practice shall not be considered abusive if the act or practice— (A) is also unfair or deceptive