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The Consumer Financial Protection Bureau ( CFPB ) has proposed a new rule that would block data point brokers from sell personal and financial selective information on Americans , admit their Social Security numbers and phone number , under the Fair Credit Reporting Act ( FCRA ) .
In project the young rules , months after President Bidensigned an executive ordering to curtail the saleof Americans ’ private data , the U.S. consumer protection government agency said it aim to “ rein in ” data brokers who sidestep Union law by claiming that they are not dependent to the FCRA ’s effectual provision .
The CFPB ’s theater director , Rohit Chopra , tell reporters on a call Monday that the proposed rule would “ cut short the widespread evasion ” of the FCRA , which is the federal seclusion law that protects personal information collected by consumer reporting agencies , like credit bureaus and tenant screening companies . The formula would also “ make it clear that many of these information brokers , like citation bureaus and background tick companies , are subject to federal protection under the FCRA . ”
The move to shut the regulative loophole at the federal stratum comes at a time when datum factor confront increasing scrutiny for profiteering from sell access to — andsometimes drop off — vast amount of Americans ’ personal information . By acknowledge the “ widespread evasion ” of the federal privateness law , Chopra said the agency recognise that data agent have long occupy advantage of the law and warned of the “ stupefying ” problem get by data brokers who are “ make this information available to anyone willing to yield a price . ”
fit in to the CFPB , the proposed dominion would treat data brokers the same as credit bureaus and screen background chip company , or any other party that sell data about income or reference scores , story , and debt defrayal , which are already subject to the FCRA . The suggest rule would also limit data agent from betray information that can place individual , such as Social Security routine and telephone set number , which would be covered under the FCRA going forward .
“ Today ’s propose rule is a major whole tone fore to ensure that ship’s company traffic in Americans ’ most sensitive information face material consequences for violate long - standing jurisprudence and for order people and our country at risk , ” Chopra said .
The CFPB said it was proposing the unexampled rule to “ further Congress ’ goal ” of protecting Americans ’ personal data , as intended when it voted to pass the FCRA in 1970 . Since then , the United States has become the only westerly commonwealth to not have passed nationwide data protections into police force .
The proposed rule will remain public in the Federal Register until other March 2025 .
It ’s unclear whether the rule will last under the incoming Trump administration , which haspromised widespread deregulationacross the U.S. administration . CFPB functionary would not say but tell newsperson that there was “ broad bipartisan recognition that data brokers pose real danger . ”
