CFPB Issues RFI on the Collection and Sale of Consumer Information

The CFPB recently issued a Request for Information (RFI) seeking public comment on the scope and breadth of data brokers and their business practices.  “Data brokers” is an umbrella term used to describe firms that “collect, aggregate, sell, resell, license, or otherwise share consumers’ personal information with other parties.”  Data brokers may interact with consumers directly or as third-parties, and may collect information from public or private sources. 

The RFI describes how data brokering companies have emerged and evolved with the growth of the internet and advanced technology.  While the Fair Credit Reporting Act (FCRA) provides a variety of consumer protections that are applicable to data brokers like credit reporting companies and information furnishers, the RFI states that many data brokering companies whose business models rely on newer technologies and novel methods purport not to be covered by FCRA.  The RFI is therefore seeking information to help the CFPB assess whether companies using these new business models are covered by FCRA, as well as to collect information on consumer harm and potential market abuses.  The CFPB’s press release indicates that information collected will be used for a planned rulemaking under FCRA.

The RFI seeks any public comments regarding data brokers, but specifically requests comment on over twenty market-level questions, as well as some individual-focused questions.  Comments are due on or before June 13, 2023.