Mounting concerns regarding the threat of data brokers to national security have prompted the Consumer Financial Protection Bureau to propose a new rule that would impose Fair Credit Reporting Act restrictions, including limitations on the sale of credit histories and scores, incomes, and debt payments on such brokers, which will be regarded as consumer reporting agencies, according to The Record, a news site by cybersecurity firm Recorded Future.
Such a rule, which is open for public comments until March 2025, would not only mandate explicit customer authorization for the sale of data but also strengthen protections against the exploitation of collected data. While CFPB Director Rohit Chopra noted the proposed rule to be a significant move toward ensuring accountability among data brokers, such regulation was regarded by data broker expert Justin Sherman to be inadequate in covering the sector's abuses. "For all the CFPB's essential work on this topic, it also underscores how far we have to go; the ultimate solutions to data brokerage privacy and security threats, including the serious threats to our national security, are legislative, and it's yet another reminder that Congress needs to regulate this industry that harms all Americans," Sherman added.
