The Consumer Financial Protection Bureau (CFPB) has proposed a rule to regulate data brokers that sell sensitive personal and financial information to scammers, stalkers, and spies. The proposal aims to protect Americans from crime and illegal foreign surveillance by limiting the sale of personal identifiers like Social Security Numbers and phone numbers.
Under the proposed rule, data brokers would be treated as consumer reporting agencies under the Fair Credit Reporting Act (FCRA), requiring them to comply with accuracy requirements, provide consumers access to their information, and maintain safeguards against misuse. This would ensure that sensitive consumer data is not sold for profit without the consumer’s consent.
The CFPB says the proposed rule addresses critical threats from current data broker practices, including national security risks, criminal exploitation, and violence, stalking, and personal safety threats. The agency found that data brokers routinely evade consumer protections by claiming they are not subject to the FCRA requirements.
Key provisions of the proposed rule include:
* Treating data brokers like credit bureaus and background check companies
* Protecting consumers’ personal identifiers from abuse and misuse
* Requiring clear consumer consent for data sharing
The CFPB’s proposal is part of a broader government-wide initiative to protect Americans’ sensitive personal data. Comments on the proposed rule must be received by March 3, 2025.
Source: https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-rule-to-stop-data-brokers-from-selling-sensitive-personal-data-to-scammers-stalkers-and-spies