A new rule has been proposed by the Consumer Financial Protection Bureau (CFPB) to regulate data aggregators that sell sensitive personal and financial information. The objective is to prevent practices that endanger consumer safety and national security. Data brokers would be classified as "consumer reporting agencies" under the Fair Credit Reporting Act (FCRA) by the rule, which would necessitate that they adhere to accuracy standards, protect against data misuse, and grant consumers access to their information. CFPB Director Rohit Chopra asserted that the sale of sensitive data about Americans without their consent poses a threat to personal safety and national security by facilitating scamming, harassment, and eavesdropping.
The proposed rule addresses critical risks such as identity theft, fraud, and surveillance by foreign adversaries like Russia and China. It would prevent data brokers from selling personal identifiers, such as Social Security Numbers, without clear consumer consent. Additionally, the rule aims to protect vulnerable groups like domestic violence survivors, law enforcement personnel, and seniors. The CFPB’s market research revealed widespread evasion of FCRA requirements, with data brokers exploiting emerging technologies to bypass legal protections. This initiative aligns with broader federal efforts to safeguard Americans’ data, complementing recent Executive Orders and actions by other agencies, including the Department of Justice’s proposed measures to block foreign access to sensitive consumer information.
