CFPB extends deadline for public comment in information brokerage probe

The Consumer Financial Security Bureau has extended most people comment interval for its investigation into how companies purchase and promote shopper information.

The CFPB launched a request for knowledge in March after saying it can purchase knowledge from information brokers, financial institutions, explicit particular person clients and totally different members of most people to guage whether or not or not brokers modify to guidelines such as a result of the Truthful Credit score rating Reporting Act (FCRA), which protects the privateness of purchaser credit score rating knowledge. The CFPB will now accept suggestions until July 15, which is 32 days earlier its distinctive deadline.

“The CFPB is aware that there’s nonetheless comparatively restricted public understanding of information brokers’ operations and totally different impacts, nevertheless that individuals are concerned regarding the lack of administration over how information about them is collected, shared, and used,” the corporate talked about in a press launch Thursday.

The corporate extended the deadline to encourage additional stakeholders to weigh in on its efforts to safeguard clients from information brokerage practices that operate away from public view, along with by growing the FCPA, the corporate talked about.

Data brokers monetize clients’ personal knowledge by means of its assortment, aggregation, licensing, and sale. They embody companies that work collectively straight with clients, and as well as third occasions that take care of credit score rating reporting, employee background checks and totally different duties.

The CFPB has expressed concern over the elusive strategies information brokers purchase and promote shopper knowledge, normally with out clients asking for consent. It clamped down on large tech companies in 2021, demanding that Amazon, Meta, and Apple disclose how they obtain and distribute payment information. 

The intention of the inquiry is to help a additional formidable regulatory effort by revealing additional about how companies purchase knowledge and the best way they use it, informing whether or not or not they’re partaking in market abuse, the CFPB talked about in a March press launch. 

The corporate asks respondents to the touch upon the overall market and their personal interactions with information brokers, asking questions designed to uncover how firms purchase information and what have an effect on these practices have had on clients. 

“We’re considerably inside the distinctive strategies via which information brokers work along with or have an effect on explicit shopper populations, paying homage to older adults, servicemembers, school college students, workers, immigrants, low-income clients, and underserved or weak clients,” the CFPB added in Thursday’s assertion.