States and authorities take action against data brokers sharing your location and habits.

A Growing Movement to Regulate Data Brokers and Protect Personal Information

A growing number of lawmakers and regulators are ⁤taking ⁤significant steps to rein in businesses ‌that profit from the mass collection ​and ​sale of private data. Data brokers, which collect data related to‌ nearly​ every ‌aspect of a person’s life, have come under scrutiny for their practices. These brokers obtain data from websites and apps that people use daily, often without their knowledge or consent.

CFPB Set ⁤to Propose Rules for Data ‌Brokers

The Consumer Financial Protection Bureau (CFPB) is one ⁢federal agency that is taking action to increase regulations around ⁤data ⁤collection.⁢ CFPB Director Rohit Chopra announced that⁤ the agency would establish rules for data‍ brokers, with a particular‍ focus on the use of artificial intelligence and its impact on individuals’ financial health.‌ The‌ CFPB intends ​to release a⁢ proposal⁣ next month to place data⁤ brokers under the Fair Credit⁣ Reporting Act, a law that holds organizations accountable for fairness and privacy. The details of these ‍rules have not yet been revealed.

“It’s critical that⁢ there’s some accountability regarding⁤ misuse or abuse‌ of our‍ private information and⁤ activities,” said Chopra. The‌ CFPB’s proposal is the broadest effort to regulate⁤ data‍ brokers to date.

Massachusetts Considers Location⁣ Data Ban

In​ addition to federal efforts, Massachusetts legislators are considering regulations for data brokers. State Rep. Kate Lipper-Garabedian and State Sen. Cynthia Creem‍ introduced the Location Shield Act, which aims to‍ prohibit the sale of cellphone location data by⁢ brokers. The bill ⁤is designed to protect sensitive information that can reveal⁤ personal details about individuals, such as⁤ their religious, racial, political, or sexual ⁣minority affiliations. It also addresses concerns about the use of⁣ location data‍ to track and potentially prosecute women ‌who have had‍ an abortion.

If Massachusetts’s bill succeeds, ⁤it will be the first state to⁤ ban⁣ the collection of location data.

The Risks of Data Brokerage

Data brokers have faced scrutiny for their role in circumventing‍ warrant ‌requests ⁤and indirectly‍ targeting users. While data brokering is technically legal, it is often⁣ misunderstood⁢ by the public. Brokers can collect information through various means, including purchasing data from third-party companies, scraping ⁣public databases, and directly tracking users’ activities through popular‌ apps. This⁤ data collection can⁤ have unintended consequences and be used to individuals’ detriment.

Attempts have been made ⁢to ​set guidelines for ‍data brokers, such⁤ as Vermont’s requirement for registration and disclosure‍ of operations and California’s Consumer Privacy Act. However, these rules have limitations, and​ companies still have significant leeway in their operations.

The need‌ for a national privacy framework that includes⁢ regulations for data brokers​ has been emphasized by ⁢lawmakers, but progress in Congress has been slow.

Overall, the movement to regulate data brokers ⁢and protect personal‍ information is gaining momentum, with both federal and state efforts underway ‍to establish rules and⁤ safeguards.