The Consumer Financial Protection Bureau (CFPB) launched an inquiry into companies that track and collect information on people’s personal lives. In issuing this new Request for Information Regarding Data Brokers and Other Business Practices Involving the Collection and Sale of Consumer Information, the CFPB wants to understand the full scope and breadth of data brokers and their business practices, their impact on the daily lives of consumers, and whether they are all playing by the same rules.
Congress passed the Fair Credit Reporting Act (FCRA) in response to concerns about data brokers assembling detailed dossiers about consumers and selling this information to those making employment, credit, and other decisions. People often have little choice about whether to enter into business relationships with these companies or whether they will be tracked, yet the data these companies collect may nevertheless play a decisive role in significant life decisions, like buying a home or finding a job. This request for information is seeking information to “(1) help inform the CFPB about new business models that sell consumer data, including information relevant to assessments of whether companies using these new business models are covered by the FCRA, given the FCRA’s broad definitions of ‘consumer report’ and ‘consumer reporting agency,’ or other statutory authorities, and (2) collect information on consumer harm and any market abuses, including those that resemble harms Congress originally identified in 1970 in passing the FCRA.”
The feedback from the public will shed light on the current state of an industry that largely operates out of public view and inform the CFPB’s future work to ensure that these companies comply with federal law. Public comment must be received by June 13, 2023. Visit the Request for Information for full details.