Ensuring that data brokers comply with the Fair Credit Reporting Act (FCCA) through sweeping requirements affecting data sales the stated goal of new rules to be proposed by the federal consumer financial protection agency, its director said Wednesday.
Speaking at an event at the White House sponsored by its Office of Science and Technology Policy, Consumer Financial Protection Bureau Director Rohit Chopra said the proposed rules, to be issued this year, would restrict certain business practices and “ensure higher levels of accountability for companies engaged in this business model.”
He said the proposal being considered would define a data broker that sells certain types of consumer data as a “consumer reporting agency” to better reflect today’s market realities.
“Under such a proposal, a company’s sale of data regarding, for example, a consumer’s payment history, income, or criminal records would generally be a consumer report, triggering requirements for ensuring accuracy and handling disputes of inaccurate information, as well as prohibiting other misuse,” Chopra said
Chopra said that “given broad reach of commercial firms to harvest and monetize data” protecting personal data can also advance safety, security, and freedom of consumers.