Data brokers would be blocked from selling sensitive personal data to potential scammers, stalkers and “spies” (those conducting espionage) under a proposal issued Tuesday by the federal consumer financial protection agency.
The Consumer Financial Protection Bureau (CFPB) said the proposal would limit the sale of personal identifiers (including Social Security numbers and phone numbers collected by some companies) and ensure that people’s financial data such as income is only shared for legitimate purposes. The bureau described those as facilitating a mortgage approval, and not selling to scammers targeting persons in financial distress.
“The proposal would make clear that when data brokers sell certain sensitive consumer information they are ‘consumer reporting agencies’ under the Fair Credit Reporting Act (FCRA), requiring them to comply with accuracy requirements, provide consumers access to their information, and maintain safeguards against misuse,” the agency said in a release.
The bureau said the proposal would do several things, including treating data brokers like credit bureaus and background check companies; protecting consumers’ personal identifiers from abuse and misuse; and requiring clear consumer consent for data sharing.
The CFPB contended that the changes would significantly limit the ability of data brokers to sell sensitive contact information that could be used to target, harass, or dox individuals seeking privacy protection. That includes domestic violence survivors, the agency said.
The proposal would also preserve existing pathways created by the FCRA for government agencies to access consumer report information for legitimate law enforcement, counterterrorism, and counterintelligence purposes, the agency said.
Comments are due by March 3, according to the proposal.
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