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CFPB US Agency Proposes Rule to Block Data Brokers from Selling Sensitive Personal Information

The Consumer Financial Protection Bureau (CFPB) has proposed a groundbreaking rule to restrict data brokers from selling Americans’ personal and financial information, marking a significant step toward strengthening privacy protections in the digital age. The rule, introduced under the Fair Credit Reporting Act (FCRA), targets practices that exploit regulatory loopholes, particularly the sale of sensitive data such as Social Security numbers and phone numbers.

CFPB’s Initiative to Curb Data Exploitation

CFPB Director Rohit Chopra emphasized the agency’s commitment to addressing the “widespread evasion” of federal privacy laws by data brokers. He noted that these companies often operate outside the regulatory frameworks governing credit bureaus and tenant screening firms, profiting from data sales while exposing consumers to significant risks. 

“This rule represents a decisive step to ensure that those trafficking in Americans’ most sensitive information face accountability,” Chopra stated during a press briefing.

The proposed rule aims to reclassify data brokers under the same legal framework as credit bureaus and background check companies, thereby closing a longstanding regulatory gap. It would impose restrictions on selling data that identifies individuals, such as Social Security numbers, income histories, and credit scores, limiting the ability of data brokers to monetize private information.

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