On December 3, 2024, the Consumer Financial Protection Bureau (CFPB) requested feedback on the Proposed Rule Protecting Americans from Harmful Data Broker Practices (Regulation V). The Proposed Rule amends Regulation V, which implements the Fair Credit Reporting Act (FCRA). Specifically, the Proposed Rule seeks to implement the FCRA's definition of consumer report and consumer reporting agency to ensure the FCRA's protections apply to all data brokers that transmit consumer information. The Proposed Rule was also issued pursuant to Executive Order 14117 on Preventing Access to Americans' Bulk Sensitive Personal Data and United States Government-Related Data by Countries of Concern. How does
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USA: CFPB publishes proposed rule prohibiting sale of sensitive personal data by data brokers
December 4, 2024
Summary
The Consumer Financial Protection Bureau (CFPB) has proposed a rule to amend Regulation V, which enforces the Fair Credit Reporting Act (FCRA), to include data brokers in the definition of consumer reporting agencies. This change would subject data brokers selling sensitive personal data, such as credit history or income information, to FCRA regulations. The Proposed Rule also mandates explicit consumer consent for obtaining or sharing credit reports, with consent to be documented through signature and retained for one year. Public feedback on the Proposed Rule is open until March 3, 2025.