Some Data Brokers Are Willing Sell Information Illegally, FTC Warns
The Federal Trade Commission has warned ten data broker companies that their practices may violate the Fair Credit Reporting Act after a secret-shopping operation revealed that the companies were willing to sell consumer data without verifying consumer identities as required by law.
The Federal Trade Commission has warned ten data broker companies that their practices may violate the Fair Credit Reporting Act after a secret-shopping operation revealed that the companies were willing to sell consumer data without verifying consumer identities as required by law.
The letters were warnings; they did not initiate any legal action against the data brokers.
“Instead, they serve to remind the companies to evaluate their practices to determine whether they are consumer reporting agencies, and if so, how to comply with that law,” the FTC said in a press release.
Data brokers compile detailed profiles of consumers by name, gleaning information from customer loyalty programs, auto loans and online activities, for example.
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