CFPB proposes rule to restrict data brokers from selling sensitive personal information

On Tuesday, Dec. 3, the Consumer Financial Protection Bureau (CFPB) proposed a new rule to block data brokers from selling personal information under the Fair Credit Reporting Act. This proposal follows President Joe Biden’s executive order aimed at curbing the sale of private data.

Companies selling personal financial information would be regulated like credit bureaus and required to maintain data safeguards.

“This means they could no longer dodge their obligations and would need to follow the same consumer protections as major credit bureaus, including accuracy requirements and providing consumers with access to their own information,” CFPB Director Rohit Chopra said.