CFPB Proposes Rule to Curb Data Brokers' Sale of Sensitive Information, FTC Bans Location Data Sales

Dec 3, 2024, 02:50 PM

The Consumer Financial Protection Bureau (CFPB) has proposed a new rule aimed at curbing the sale of Americans' sensitive personal and financial data by data brokers. This initiative seeks to amend Regulation V to broaden the definition of organizations treated as 'consumer reporting agencies' under the Fair Credit Reporting Act, thereby including data brokers who sell data on consumers' income, credit history, and more. The proposed rule aims to prevent the sale of such data to scammers, stalkers, spies, and other unscrupulous actors, including those who might use the data for advertising purposes. Simultaneously, the Federal Trade Commission (FTC) has taken action against data brokers Gravy Analytics, Venntel, and Mobilewalla, banning them from collecting and selling sensitive location data that could expose individuals' visits to health facilities, places of worship, schools, and refugee shelters. This crackdown comes amidst concerns over data privacy and security, with the CFPB's rule potentially facing challenges under a new administration.