Hello my followers! Today we have some interesting news from the Consumer Financial Protection Bureau (CFPB). They are looking into proposing new regulations that would require data brokers to comply with the Fair Credit Reporting Act.

In a recent speech at the White House, CFPB Director Rohit Chopra mentioned that the agency is considering policies to hold companies that buy and sell consumer data more accountable. This initiative aligns with an executive order issued by President Joe Biden in February.

Chopra highlighted the importance of defining data brokers that sell certain types of data as “consumer reporting agencies,” which would subject them to compliance with the Fair Credit Reporting Act. This statute restricts the sharing of specific data, such as credit reports, unless it serves a lawful purpose outlined in the law.

The CFPB views the buying and selling of consumer data as a national security concern, emphasizing the risks associated with foreign adversaries obtaining Americans’ personal information. Chopra referenced major data breaches, like those at Anthem, Equifax, and Marriott, as examples of how personal data can fall into the wrong hands.

While high-profile hacks grab headlines, Chopra also pointed out the legal practice of data brokers selling detailed personal information to anyone willing to pay for it. The concern is that this information could end up in the hands of foreign intelligence services or other entities controlled by foreign governments.

In response to these concerns, the White House and Congress are taking steps to address the issue. Legislation has been proposed to prohibit data brokers from selling Americans’ personally identifiable information to entities controlled by foreign adversaries. Government agencies are also being scrutinized for their use of data brokers to monitor Americans.