The Consumer Financial Protection Bureau (CFPB) is exploring new regulations to address the activities of data brokers in response to the growing risks associated with artificial intelligence. CFPB Director Rohit Chopra announced during a White House roundtable that the agency is considering bringing data brokers, who collect and sell consumer data, into the scope of the Fair Credit Reporting Act.
The Fair Credit Reporting Act provides consumers with various safeguards pertaining to background reports that contain information about them. It ensures accuracy, restricts improper use of information, and extends protection to consumers. Chopra proposed that data brokers be classified as consumer reporting agencies, and the sale of data related to payment history, income, and criminal records should be treated as a consumer report, triggering additional legal requirements.
Additionally, the CFPB is evaluating whether identifying information found in consumer reports, specifically “credit header” data from credit reporting companies, should also be considered a consumer report. Such a rule could limit credit reporting companies’ ability to disclose sensitive contact information that can be used to identify individuals.
Chopra emphasized the significance of these potential regulations in light of the growing reliance on data by artificial intelligence and other predictive decision-making technologies. The abundance of data generated by data brokers can have significant consequences, such as influencing job interviews, bank account approvals, and loan applications. It is crucial to hold individuals and organizations accountable for the misuse or abuse of private information and activities.
In conclusion, the CFPB is actively considering measures to address the activities of data brokers and mitigate the risks associated with artificial intelligence. By potentially expanding the scope of the Fair Credit Reporting Act and clarifying the definition of consumer reports, the CFPB aims to protect consumers’ privacy and ensure accountability for the use of personal information.
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