The US Consumer Financial Protection Bureau (CFPB) has announced its plan to crack down on predatory data broker practices that allegedly fuel scams, violence, and threats to national security. The agency proposes a rule that would allow regulators to police data brokers under the Fair Credit Reporting Act (FCRA), a landmark privacy law enacted over 50 years ago.
The CFPB aims to limit data brokers’ ability to sell sensitive personal information, including financial data, credit scores, phone numbers, Social Security numbers, and addresses. Director Rohit Chopra states that data brokers can profit from enabling scamming, stalking, and spying by selling personal data without consent.
The proposal treats data brokers like credit reporting agencies when dealing with sensitive data. It would require data brokers to obtain explicit authorization before acquiring or sharing people’s credit information. The CFPB also aims to prevent companies from burying permissions in complex documents that are often unreadable.
Chopra emphasizes the importance of protecting personal data in light of recent attacks on US telecommunications systems attributed to China. He warns that data brokers’ sensitive data can be easily accessed by foreign rivals willing to pay a price.
The CFPB’s proposal is not new, but it highlights the growing need for regulation due to the increasing risks of data breaches and abuse. Consumer-focused nonprofits have urged Chopra to enforce powers under the FCRA to prevent data brokers from engaging in damaging practices.
As the incoming Trump administration aims to reorganize the federal government, some lawmakers and industry leaders have attacked the CFPB’s work. However, advocacy groups praise the agency’s proposal, calling it a crucial step towards protecting Americans’ personal information.
Source: https://www.wired.com/story/cfpb-fcra-data-broker-oversight