{"id":46098,"date":"2024-12-09T14:15:56","date_gmt":"2024-12-09T19:15:56","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=46098"},"modified":"2024-12-09T14:39:35","modified_gmt":"2024-12-09T19:39:35","slug":"ftc-and-cfpb-reigning-in-data-brokers","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2024\/12\/09\/ftc-and-cfpb-reigning-in-data-brokers\/","title":{"rendered":"FTC and CFPB Reining in Data Brokers"},"content":{"rendered":"

FTC<\/a> (tweet<\/a>):<\/p>\n

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The Federal Trade Commission will prohibit data broker Mobilewalla, Inc. from selling sensitive location data, including data that reveals the identity of an individual’s private home, to settle allegations the data broker sold such information without taking reasonable steps to verify consumers’ consent.<\/p>\n

Under the FTC’s proposed settlement order<\/a>, Mobilewalla will also be banned from collecting consumer data from online advertising auctions for purposes other than participating in those auctions, marking the first time the agency has alleged such a practice was an unfair act or practice.<\/p>\n<\/blockquote>\n\n

CFPB<\/a>:<\/p>\n

The Consumer Financial Protection Bureau (CFPB) today proposed a rule to rein in data brokers that sell Americans’ sensitive personal and financial information. The proposed rule would limit the sale of personal identifiers like Social Security Numbers and phone numbers collected by certain companies and make sure that people’s financial data such as income is only shared for legitimate purposes, like facilitating a mortgage approval, and not sold to scammers targeting those 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.<\/p><\/blockquote>\n\n

Karl Bode<\/a>:<\/p>\n

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This time the FTC is taking aim at Gravy Analytics and its subsidiary Venntel, which the FTC announcement<\/a> and complaint<\/a> says violated the FTC Act by illegally selling sensitive consumer location data without obtaining verifiable user consent for commercial and government uses.<\/p>\n<\/blockquote>\n\n

Nick Heer<\/a>:<\/p>\n

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As usual, I am conflicted about these policies. While they are yet another<\/a> example<\/a> of Lina Khan’s FTC and other government bureaucrats cracking down on individually threatening data brokers, it would be far better for everyone if this were not handled on a case-by-case basis. These brokers have already caused a wealth of damage<\/a> around the world, and only they are being required to stop. Other players in the rest of the data broker industry will either self-govern or hope they do not fall into the FTC’s crosshairs, and if you believe the former is more likely, you have far greater faith in already-shady businesses than I do.<\/p>\n<\/blockquote>\n\n

Previously:<\/p>\n