CFPB to Develop Rules for Data Broker Industry

The Consumer Financial Protection Bureau will issue rules that would apply the Fair Credit Reporting Act to data brokers and others that collect consumer data, CFPB Director Rohit Chopra announced at a White House event Tuesday (see 2303150027). Chopra said the agency is considering defining brokers as consumer reporting agencies. The proposal would “generally treat a data broker’s sale of data” about things like consumer payment history, income and criminal records as a “consumer report, because that type of data is typically used for credit, employment, and certain other determinations,” he said. “This would trigger requirements for ensuring accuracy and handling disputes of inaccurate information, as well as prohibit misuse.” The CFPB and state enforcers will be able to enforce updated rules under FCRA, he said. He noted the FTC, the Department of Transportation, USDA and other agencies can “enforce these rules for specific sectors under their jurisdiction.” The CFPB’s data broker rulemaking will complement the FTC’s efforts on data privacy and security, he said. The CFPB plans to open the rule for public comment in 2024.