Senate Bill Targets Data Brokers
Legislators seek accountability from data brokers regarding the information they collect and sell, and aim to prevent brokers from identifying consumers who are financially at risk.
On Feb. 12, Sens. Jay Rockefeller (D-W.Va.) and Edward Markey (D-Mass.) introduced legislation that would restrict data brokers from collecting or soliciting consumer information in deceptive ways, according to The Wall Street Journal. Consumers would be able to access and correct their information and opt out of having it sold for marketing purposes.
The Federal Trade Commission and Consumer Financial Protection Bureau have also expressed concern about data brokers’ practices. In May, the FTC warned 10 data brokers that they may be violating the Fair Credit Reporting Act.
Policymakers are concerned that data could be used to solicit individuals with products carrying high interest rates or that could trap consumers with debt, according to the Journal.
“If it’s being used to harm consumers, we’re very concerned about it, and we will think about whether there are violations of law we can address,” CFPB Director Richard Cordray told the Journal.
It has been a regular practice of data brokers to gather information on consumers and sell it to companies. The practice is monitored more now as the numbers of data brokers increase, more consumers are profiled and access to data is more widely available through the Internet and other technologies, according to the article.
Sen. Rockefeller has requested information from six companies about their products used to find consumers based on their financial or health status. “I am concerned that these products seem tailor-made for businesses seeking to take advantage of consumers,” he told the Journal.
Source: ACA