CFPB Proposes Rules to Curb Data Broker Sales

The Consumer Financial Protection Bureau (CFPB) has proposed new regulations to limit data brokers from selling Americans' personal and financial information, in a bid to curb misuse and protect privacy. The proposed rule would classify data brokers as consumer reporting agencies, requiring them to comply with the Fair Credit Reporting Act (FCRA), akin to credit bureaus like Experian and Equifax. This move aims to prevent the sale of sensitive data, such as Social Security numbers and addresses, to malicious actors, including scammers and foreign adversaries. The proposal follows concerns over breaches, like the National Public Data incident, and broader issues involving unauthorized data sales leading to national security risks. Public comment on the proposal is open until March 3, with the CFPB highlighting the need for clear consumer consent for data sharing. This regulatory effort underscores growing bipartisan support for stronger oversight in data privacy and security.