CFPB Quietly Kills Rule to Shield Americans From Data Brokers

The Consumer Financial Protection Bureau (CFPB) has quietly revoked a rule that would have provided Americans with more control over their personal data and protected them from predatory practices of data brokers.

The rule, which was initially proposed in 2019, aimed to give consumers the right to opt out of having their personal financial information shared or sold by data brokers without their consent.

The decision to abandon the rule was made without any public announcement, sparking outrage among consumer advocacy groups and privacy experts.

Data brokers collect, compile, and sell personal information about individuals, including their purchasing habits, financial transactions, and online activities, to businesses, marketers, and other third parties.

Without proper oversight and regulation, data brokers can misuse this sensitive information for targeted advertising, credit scoring, insurance underwriting, and other purposes without the knowledge or consent of consumers.

The CFPB’s move to abandon the rule has raised concerns about the lack of protection for consumer data privacy and the growing power of data brokers in the digital economy.

Many fear that without proper safeguards in place, consumers will continue to be vulnerable to privacy violations, identity theft, and financial exploitation by data brokers.

Advocates are urging Congress to take action to strengthen consumer protections and safeguard personal data from being exploited by data brokers and other third parties.

It remains to be seen how the CFPB’s decision will impact Americans’ privacy rights and whether lawmakers will step in to fill the regulatory gap left by the abandoned rule.