US watchdog proposes limits on ‘knowledge brokers’ sale of private information

By Douglas Gillison

(Reuters) – The sale of Individuals’ personal info by “knowledge brokers” to scammers, overseas adversaries, abusive home companions and different unscrupulous actors may face stringent new proposed laws, the highest U.S. client company for monetary safety introduced on Tuesday.

If adopted, the proposed new guidelines would topic “knowledge brokers” to oversight by the Shopper Monetary Safety Bureau, requiring them to adjust to credit score reporting legal guidelines, thereby reining in a observe officers say poses threats to nationwide safety and public security.

“The dimensions of this drawback is staggering,” CFPB Director Rohit Chopra instructed reporters forward of the announcement, citing analysis in keeping with which some knowledge brokers explicitly marketed the sale of senior nationwide safety officers’ private info.

The proposal additionally comes within the ultimate weeks of President Joe Biden’s administration, that means its destiny shall be decided after President-elect Donald Trump, who has pledged sweeping cuts to spending and laws, takes workplace in January.

In contrast to different regulators, CFPB officers have determined to proceed rulemaking within the hopes that some new client protections could survive the change in administration, Reuters reported final week.

CFPB officers mentioned they believed the topic nonetheless loved “broad bipartisan recognition.”

Underneath the proposal, corporations that acquire and promote shoppers’ private monetary info – akin to earnings knowledge, internet value and credit score rankings – can be regulated like credit score bureaus and required to keep up safeguards towards the misuse of knowledge, to make sure its accuracy and permit shoppers to entry their very own info.

The proposal flows from a broader Biden administration concern with private knowledge use. The Federal Commerce Fee in 2022 sued an Idaho firm, saying its cell phone geolocation knowledge may very well be traced to abortion clinics, church buildings and dependancy remedy amenities.

CFPB officers say the unrestricted sale of such knowledge for pennies per particular person permits espionage, permits thieves to focus on financially susceptible folks and permits doubtlessly violent actors to focus on regulation enforcement officers and others.

Officers traced the 2020 homicide of a federal choose’s son to a person who had bought her dwelling deal with, in keeping with the CFPB.

The proposal shall be topic to public remark till March 2025.