Proposed rule may ban US data brokers from selling sensitive information

Data privacy is a common concern for everyone using the Internet. Every day, it seems like there’s a new data breach, with malicious actors gaining access to millions of people’s identifying and sensitive data and proceeding to sell it on the dark web. 

That is undoubtedly terrible and needs to be tackled more effectively. But what about those who glean and share similar data perfectly legally and without repercussion? The Consumer Financial Protection Bureau (CFPB) recently proposed a rule to prevent data brokers from selling people’s sensitive data. 

What are data brokers?

Data brokers are businesses built on finding people’s personal data and selling it on to other companies. They can use this data to build a pretty accurate profile of who you are that they can pass on to interested parties. Interested parties can include retailers, tech companies, and even scammers. 

More legitimate companies generally use this information to more successfully sell something to you or under the guise of personalizing user experiences, but it can also be used to better target you for malicious purposes.

The data used to create these profiles runs the gamut, ranging from age, location, and phone number to social security numbers, hobbies, and political beliefs. Data brokers use a variety of sources to collect this information, including publicly accessible records, web trackers from websites and apps you use, and commercial sources. 

Sometimes, you might even permit this data to be shared without even realizing it (another reason to always read the fine print on sites seeking consent for using your personal data, such as GDPR forms.)

The CFPB’s proposal

Companies using your most sensitive data for financial gain isn’t a pleasant thought for most people. This is why The CFPB is seeking to limit data brokers’ access and ability to sell such information while also ensuring financial data such as income can only be shared for a legitimate reason, like facilitating a mortgage approval.

CFPB Director Rohit Chopra explained the reasoning behind the move:

“By selling our most sensitive personal data without our knowledge or consent, data brokers can profit by enabling scamming, stalking, and spying. The CFPB’s proposed rule will curtail these practices that threaten our personal safety and undermine America’s national security.”

The CFPB believed these limitations on data brokers would help reduce 

• National security and surveillance risks
• Stalking and threats of violence towards domestic violence survivors
• Criminal exploitation

Possible roadblocks

While most ordinary people would welcome limitations on the circulation of their personal data, not everyone is likely to be so keen. The Verge points out that some government agencies, such as the FBI and Immigration and Customs Enforcement, often utilize data brokers to circumvent surveillance restrictions. Senator Ron Wyden also told the publication that the upcoming Trump administration is eager to shut down the CFPB. 

It remains to be seen whether or not this proposal for increased consumer rights will be implemented at all.