The Consumer Financial Protection Bureau (CFPB) has launched an inquiry that will include input from the public into the business practices of so-called “data brokers” that track and collect information on consumers to help inform the Bureau’s planned rulemaking under the Fair Credit Reporting Act (FCRA), according to a press release on the CFPB website.
Issued on March 15, 2023, the “Request for Information Regarding Data Brokers and Other Business Practices Involving the Collection and Sale of Consumer Information” will help the CFPB understand the full scope and breadth of data brokers and their business practices, their impact on the daily lives of consumers, and whether they are all playing by the same rules.
The Request for Information from the CFPB is a chance for the public to share feedback about data brokers that can play a significant role in people’s lives and in the economy. The feedback will shed light on the current state of the industry and inform the CFPB’s future work to ensure that these companies comply with federal law that includes the FCRA.
“Congress passed the FCRA in response to concerns about data brokers. The FCRA provides a range of protections, including accuracy standards, dispute rights, and restrictions on how data can be used. The law covers data brokers like credit reporting companies and background screening firms, as well as those who report information to these firms,” the CFPB explained.
The inquiry by the CFPB seeks information about business practices employed by data brokers to inform the Bureau’s efforts to administer the law to reflect these market realities that include planned rulemaking under the FCRA. The request for information will be published in the Federal Register and the public will be able to submit their comments until June 13, 2023.
ClearStar is a leading global Human Resources technology company that specializes in background checks, drug testing, and occupational health screening. ClearStar helps employers make informed hiring decisions while remaining in compliance with the FCRA that regulates background checks for employment in the United States. To learn more, contact ClearStar.
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Thomas Ahearn - Digital Content Editor
Thomas Ahearn is a Digital Content Editor at ClearStar, a leading Human Resources technology company specializing in background checks, drug testing, and occupational health screening. He writes about a variety of topics in the background screening industry including Artificial Intelligence (AI), "Ban the Box," class action lawsuits, credit reports, criminal records, drug testing, Equal Employment Opportunity Commission (EEOC), Fair Credit Reporting Act (FCRA), identity theft, privacy, social media screening, and workplace violence.
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