United States President Joe Biden’s White House convened a roundtable “on how the data broker industry monetizes personal information and actions the Administration is taking to address potential harms to American consumers” on August 15, 2023, according to a “Readout of White House Roundtable on Protecting Americans from Harmful Data Broker Practices.”
The roundtable on data broker practices – which included civil society leaders, researchers, and policymakers – was hosted by the White House Office of Science and Technology Policy (OSTP), the National Economic Council (NEC), the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), and the Department of Justice (DOJ).
Administration officials pledged “to continue using their authorities to subject data brokers to greater regulation and oversight, and to curb the harms they cause. Participants shared stories, insights, and concerns about the harms and risks that data brokers’ practices create for everyday Americans,” the White House statement read. Issues raised in the roundtable included:
- The surreptitious collection, use, and sale of detailed sensitive data;
- Data-driven scoring that limits access to housing and economic opportunities for Black and brown communities;
- Predatory scams targeting individuals with cognitive vulnerabilities;
- Increased risks to personal safety, including gender-based violence; and
- Insufficient oversight of brokers under existing law.
“Participants underscored how the data broker economy enables discriminatory practices in credit underwriting, insurance, housing, employment, and advertising, continuing patterns of exclusion that disproportionately harm underserved and vulnerable groups.” The complete statement from the White House about the roundtable is available here.
Earlier in the day of the roundtable, CFPB Director Rohit Chopra announced plans to propose rules to ensure all “data brokers” comply with the federal Fair Credit Reporting Act (FCRA). The CFPB will publish an outline of proposals and alternatives under consideration for a proposed rule in September 2023 and plan to propose the rule for public comment in 2024.
“After conducting an inquiry into the practices of data brokers in the surveillance industry, we have decided to launch a rulemaking to ensure that modern-day digital data brokers are not misusing or abusing our sensitive data. During our formal inquiry, the CFPB learned more about the significant harms,” CFPB Director Chopra remarked before the roundtable.
“In 1970, Congress enacted the Fair Credit Reporting Act, which granted people new rights and protections, including safeguards to ensure accurate information, the right to dispute errors, the right to access your own information, and restrictions on how others can use your information,” CFPB Director Chopra explained about the FCRA.
ClearStar is a consumer reporting agency (CRA) as defined by the FCRA and a leading global Human Resources technology company specializing in background checks, drug testing, and occupational health screening. ClearStar offers employers various compliance services that include a full understanding of the FCRA. To learn more about ClearStar, contact us.
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Thomas Ahearn - Digital Content Editor
Thomas Ahearn is a Digital Content Editor at ClearStar, a leading Human Resources (HR) 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), Form I-9, identity theft, privacy, social media screening, and workplace violence.
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