L-R: Matthew G. White, Alexander F. Koskey III, and Madison "MJ" McMahan of Baker Donelson. Courtesy photosCFPB Proposes Rule to Regulate Data Brokers Selling Sensitive Information
In today's digital landscape, data brokers are like modern-day gold miners, sifting through the intimate details of our lives—our addresses, financial records, Social Security numbers—and quietly turning that information into profit. Most of us never asked for this arrangement, yet here we are, with personal data fueling a booming, largely unregulated industry.
January 14, 2025 at 01:12 PM
5 minute read
In today's digital landscape, data brokers are like modern-day gold miners, sifting through the intimate details of our lives—our addresses, financial records, Social Security numbers—and quietly turning that information into profit. Most of us never asked for this arrangement, yet here we are, with personal data fueling a booming, largely unregulated industry.
The Consumer Financial Protection Bureau (CFPB) has proposed a new rule that if finalized, would fundamentally change how data brokers are permitted to handle sensitive personal and financial information of consumers. The proposed rule, which uses the Fair Credit Reporting Act (FCRA) as its legal anchor, would classify data brokers who sell sensitive information as "consumer reporting agencies." This specifically means they will be held to stricter standards and real accountability. The following alert outlines the potential implications of this proposed rule and the potential impact on businesses reliant on data brokers, either to verify customers in finance or to tailor marketing efforts.
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