The Consumer Financial Protection Bureau (CFPB) is investigating the business practices of companies that track and collect information on people’s personal lives.
The bureau issued a request for information to understand these data brokers and their business practices, their impact on consumers, and if they are all playing by the same rules. This request is an opportunity for the public to share feedback about these companies. The input will help inform the CFPB’s future work to ensure these companies comply with federal law.
“Modern data surveillance practices have allowed companies to hover over our digital lives and monetize our most sensitive data,” CFPB Director Rohit Chopra said. “Our inquiry will inform whether rules under the Fair Credit Reporting Act reflect these market realities.”
The CFPB points out that people often have little choice about whether to enter into business relationships with these companies or whether they will be tracked. However, the data they collect may play a decisive role in significant life decisions, like buying a home or finding a job.
Congress recently passed the Fair Credit Reporting Act (FCRA) in response to concerns about data brokers. The law provides a range of protections, including accuracy standards, dispute rights, and restrictions on how data can be used. It covers data brokers like credit reporting companies, background screening firms, and those who report information to these firms.
Specifically, through this RFI, the CFPB is interested in hearing about the business models and practices of the data broker market, including details about the types of data the brokers collect and sell. The bureau is also interested in hearing about people’s direct experiences with these companies, including when individuals attempt to remove, correct, or regain control of their data.
The request for information is open for public comment until June 13.