CFPB Quietly Kills Rule to Shield Americans From Data Brokers

In a controversial move, the Consumer Financial Protection Bureau (CFPB) has quietly killed a rule that would have helped protect Americans’ data from being bought and sold by data brokers without their knowledge or consent.

The rule, which was proposed in 2019, aimed to give consumers more control over their personal information and require data brokers to obtain individuals’ permission before collecting and selling their data.

However, the CFPB, under new leadership, decided to withdraw the rule, citing concerns about compliance costs for businesses and potential impacts on the economy.

This decision has raised concerns among privacy advocates and consumer rights groups, who argue that Americans’ data should be better protected from exploitation by data brokers.

Data brokers are companies that collect, analyze, and sell consumers’ personal information to third parties, often without their knowledge or consent.

These companies can gather data from a variety of sources, including social media, online activities, and public records, and use it to create detailed profiles of individuals.

Without proper regulations in place, data brokers can sell this information to advertisers, marketers, and other third parties, potentially exposing consumers to privacy risks and identity theft.

Advocates argue that the CFPB’s decision to kill the rule leaves consumers vulnerable to data breaches and other privacy violations, and call for stronger protections to be put in place.

It remains to be seen what actions, if any, will be taken to address the concerns raised by the withdrawal of the rule, and how it will impact Americans’ privacy rights in the future.