CFPB plans new rules for data brokers

In early March, the director of the Consumer Financial Protection Bureau, Rohit Chopra, revealed plans to introduce new regulations within the year under the Fair Credit Reporting Act. This initiative aims to restrict specific actions of data brokers, including those that sell sensitive personal data overseas.

Chopra’s announcement comes as a response to President Biden’s executive order instructing agencies to safeguard personal data gathered by companies, which may be vulnerable to access by foreign entities. 

The President additionally urged the CFPB to take measures to safeguard Americans from illegal practices by data brokers who compile and sell highly sensitive information, including those of the U.S. military.

“The executive order calls on the CFPB to utilize its legal authorities to provide greater protections. This year, we will be proposing new rules to rein in these abuses that will safeguard families and our national security,” Chopra said.