The expanding data broker industry has raised concerns about individuals' safety, financial security, and access to vital goods and services. As the digital environment evolves, it becomes challenging for individuals to handle their data privacy independently. Issues arise particularly in scenarios such as sensitive data collection from apps and websites necessary for disabled individuals, and workers facing difficulties when questioning their employers' data handling practices.
In response to this growing concern, the Consumer Financial Protection Bureau (CFPB) has put forth a proposed rule addressing problematic data broker practices that contravene the Fair Credit Reporting Act (FCRA). On April 2, 2025, several organizations, including the Center for Democracy and Technology, Coworker, Deaf Equality, Disability Rights Education and Defense Fund, National Employment Law Project, New Disabled South, Open MIC, and Tzedek DC, collectively reached out to the CFPB. They expressed their support for the proposed rule and encouraged the agency to expedite the finalization of this rule.
The proposed regulation aims to specify which types of data fall under the FCRA, safeguard such data from being misused for marketing when initially collected for credit reporting purposes, compel more transparency from data brokers, and empower consumers to withdraw consent for particular uses of their credit information.
The CFPB is taking necessary steps to mitigate the risks posed by data brokers. Advancing the proposed rule is seen as a pivotal move towards demanding accountability from the industry.
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