The Consumer Financial Protection Bureau has proposed new rules under the Fair Credit Reporting Act that would prevent data brokers from selling Americans' personal and financial information, including Social Security numbers and phone numbers.
Months after President Biden signed an executive order curbing the sale of Americans' personal data, the U.S. Consumer Protection Bureau argued that data brokers are not data brokers in proposing new rules. It said it was intended to “curb” evasion of federal law. The legal provisions of the FCRA apply.
CFPB Director Rohit Chopra told reporters during a conference call Monday that the proposed rules would be part of the FCRA, the federal privacy law that protects personal data collected by consumer reporting agencies such as credit bureaus and tenant screening companies. He said the move would “curb wide-spread evasion”. The rule would also “clarify that many data brokers, such as credit reporting and background check companies, are subject to federal protections under the FCRA.”
The move to close regulatory loopholes at the federal level comes amid increased scrutiny of data brokers, who are accused of selling access to vast amounts of Americans' personal information, sometimes for profit at a loss. I was disappointed. By allowing “widespread circumvention” of federal privacy laws, Chopra said the agency recognizes that data brokers have long taken advantage of the law, adding that data brokers “cannot make this data available to anyone.” He warned of the “alarming” problems caused by “allowing people to do things”. I'm ready to pay the price. ”
According to the CFPB, the proposed rules would make data brokers similar to credit reporting and background checking companies, or other companies that sell data on income, credit scores, history, and debt repayments that are already subject to the FCRA. It is said that it will be handled as follows. The proposed rule would also restrict data brokers from selling personally identifiable information such as social security numbers and phone numbers, which would now be subject to the FCRA.
“Today's proposed rules will ensure that companies trafficking Americans' most sensitive information face real consequences for violating long-standing laws and endangering people and our country. This is a major step forward in ensuring that
The CFPB said it is proposing the new rules to “further Congress' goal” of protecting the personal data of U.S. citizens, as it intended when it passed the FCRA in 1970. Since then, the United States has become the only Western democracy without this rule. Passed a national data protection law.
The proposed rule will be published in the Federal Register until early March 2025.
It is unclear whether this rule will continue under the incoming Trump administration, which has promised widespread deregulation across the U.S. government. CFPB officials did not make a statement, but told reporters: “There is broad bipartisan recognition that data brokers pose a real danger.”