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CFPB Quietly Kills Rule to Shield Americans From Data Brokers
- The CFPB has scrapped plans to implement new rules aimed at restricting US data brokers from selling sensitive information about Americans.
- The proposed rule, titled 'Protecting Americans from Harmful Data Broker Practices,' intended to require data brokers to obtain consent before selling personal information.
- Acting director Russel Vought withdrew the proposal, citing updates to Bureau policies and a misalignment with the current interpretation of the Fair Credit Reporting Act.
- Data brokers operate a lucrative industry by collecting and selling detailed personal information without individuals' knowledge, leading to privacy concerns.
- Privacy advocates and organizations have criticized the withdrawal, emphasizing the risks posed by data brokers to national security and individuals' privacy.
- The FTA urged the rule's withdrawal, claiming it exceeded the CFPB's mandate and would hinder fraud prevention efforts by financial institutions.
- Experts warn that data brokers' practices can have severe consequences, from enabling scams and fraud to endangering public officials and survivors of domestic violence.
- CFPB employees faced job terminations recently, reducing the agency's staff, amid calls by some to eliminate the agency altogether.
- Concerns have been raised about data brokers' ability to track sensitive information, including military personnel locations, posing risks to national security.
- The withdrawal of the CFPB rule has been met with criticism from various quarters, highlighting the need for regulations to address privacy and national security concerns.
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