Consumer agency seeks to limit data sales, combat “digital surveillance”
Dec 11, 2024
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Rohit Chopra, the Director of the Consumer Financial Protection Bureau (CFPB), dives into the alarming world of data brokers and the sale of sensitive consumer information like Social Security numbers and credit scores. He discusses a proposed rule aiming to tighten regulations on these brokers, aligning their accountability with that of credit reporting agencies. Chopra also emphasizes the stark imbalance between consumer awareness and the reality of digital surveillance, spotlighting California's Delete Act as a crucial step towards granting consumers more control over their data.
The proposed rule by the Consumer Financial Protection Bureau seeks to protect consumers by limiting the sale of sensitive data to legitimate purposes only.
Legislation like California's Delete Act aims to empower consumers by simplifying the process of deleting personal information and enhancing data privacy rights.
Deep dives
Proposed Rules to Protect Sensitive Consumer Data
A proposed rule by the Consumer Financial Protection Bureau aims to restrict data brokers from selling sensitive consumer information, including social security numbers and income details. This regulation would require that such data is only shared for legitimate purposes, like securing loan offers, rather than being sold to potential scammers. The framework would align the obligations of data brokers with those of credit reporting agencies, ensuring accurate information is maintained and allowing consumers to dispute errors. This change seeks to prevent the misuse of personal data in ways that compromise national security and consumer safety.
Consumer Awareness and Legislative Efforts
Consumers often remain unaware of the extensive data collected and sold about them, contributing to a landscape of digital surveillance. Laws like California's Delete Act, which will require data brokers to facilitate the deletion of personal information by 2026, are being enacted to empower consumers. Such legislation aims to create easier avenues for individuals to manage their data privacy by consolidating their deletion requests rather than approaching multiple companies. There is growing bipartisan support for initiatives to enhance data privacy protections across states, highlighting the rising concern over corporate surveillance practices that affect consumer rights.
As consumers, we leave trails of personal data all over the internet. And collecting and selling it is big business. Sensitive information, like our Social Security numbers, incomes and credit scores, are often sold by so-called data brokers to the highest bidder. Sometimes that’s a bank, sometimes it’s a scammer. This month, the federal Consumer Financial Protection Bureau proposed a rule that would crack down on the practice. It would bar companies from selling sensitive data or hold them to the same legal standards that apply to credit reporting agencies. Rohit Chopra, director of the CFPB, explained the proposal in more detail to Marketplace’s Meghan McCarty Carino.
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