The CFPB’s rulemaking on consumer data business models, among other topics, closed for comments this summer.
08/16/2023 9:15 A.M.
1.5 minute read
The Consumer Financial Protection Bureau advanced discussions of a rulemaking on data brokers and the Fair Credit Reporting Act this week.
According to media reports, the White House Office of Science and Technology Policy held a roundtable on data broker practices Tuesday with the National Economic Council, CFPB, Federal Trade Commission and Principal Deputy Assistant Attorney General Brian Boynton.
The CFPB launched a rulemaking inquiry on data brokers and the FCRA in March, and closed comments this summer, ACA International previously reported.
“Reports about monetization of sensitive information—everything from the financial details of members of the U.S. military to lists of specific people experiencing dementia—are particularly worrisome when data is powering ‘artificial intelligence’ and other automated decision-making about our lives,” Chopra said in a statement this week, according to Bloomberg Law.
According to the CFPB’s rulemaking agenda, a proposal related to the FCRA is in the pre-rule stage.
The request for information on data brokers and the FCRA seeks to inform the CFPB about new business models that sell consumer data, including information relevant to assessments of whether companies using these new business models are covered by the FCRA, given the FCRA’s broad definitions of “consumer report” and “consumer reporting agency,” or other statutory authorities, and collect information on consumer harm and any market abuses, including those that resemble harms Congress originally identified in 1970 in passing the FCRA, ACA previously reported.
The CFPB is now seeking input from small businesses about the proposed rule, according to FAQs from the bureau (PDF). Interested businesses should contact the CFPB at [email protected]. within the next week.
Read Chopra’s remarks at the White House roundtable here.
Meanwhile, after releasing its rulemaking agenda, the CFPB announced a Small Business Regulatory Enforcement Act (SBREFA) panel related to proposed rules for credit reporting, ACA previously reported.
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