Unveiling the Hidden Dangers: White House Takes Action on Harmful Data Broker Practices

Privacy White House Hosts Roundtable on Harmful Data Broker Practices

August 15, 2023 | Tonya Riley

The White House is taking action to address the harmful practices of data brokers and protect Americans’ privacy. In a roundtable discussion hosted by Arati Prabhakar, the Director of the White House Office of Science and Technology Policy, and attended by prominent figures such as National Economic Council Director Lael Brainard, Consumer Financial Protection Bureau Director Rohit Chopra, Federal Trade Commission Chair Lina Khan, and Principal Deputy Assistant Attorney General Brian Boynton, the administration aims to establish stronger privacy protections and set limits on how companies collect, use, and share personal data.

Proposed Rules to Rein in Data Brokers

The roundtable coincides with an announcement from the Consumer Financial Protection Bureau (CFPB) that it will be issuing proposed rules to rein in data brokers. The rules will ensure that certain data brokers are prohibited from selling data for purposes other than those authorized under the Fair Credit Reporting Act (FCRA). Data brokers may fall under the jurisdiction of the FCRA if they sell sensitive information such as payment history, income, or criminal records.

CFPB Director Rohit Chopra expressed concern about the monetization of sensitive information, including financial details and personal health data, by data brokers. He emphasized that the CFPB will take steps to prevent illegal collection and sharing of data by modern-day data brokers in the surveillance industry. This move aligns with the Biden administration’s commitment to protecting Americans’ privacy and ensuring data brokers do not engage in harmful practices.

Risks and Concerns

Researchers and consumer advocates have long warned about the risks posed by data brokers to Americans’ privacy. Data brokers have been found to market and sell highly sensitive information, including mental health data and geolocation data without consumers’ awareness. This raises concerns not only about privacy but also national security risks, as foreign adversaries could potentially purchase sensitive data of military members and other targets.

Various organizations and individuals, including researchers from Consumer Reports, Duke University, Data for Black Lives, and the Alzheimer’s Association, will attend the roundtable to share their perspectives and advocate for stronger privacy protections against data broker practices.

Government and Congress Taking a Stand

The White House roundtable and the CFPB announcement reflect the Biden administration’s growing commitment to addressing data broker practices. Last year, the Federal Trade Commission (FTC) sued a data broker for selling geolocation information from millions of mobile devices, and Congress launched an investigation into data broker companies’ practices, including harvesting and selling data without consent.

In his previous State of the Union addresses, President Biden called on Congress to pass comprehensive federal privacy legislation. Although the House Energy and Commerce Committee passed comprehensive federal privacy legislation, it has not yet reintroduced the bill. However, there is still interest in reintroducing federal privacy legislation, according to a senior committee aide. Senate Commerce Committee Chairwoman Maria Cantwell also expressed plans to address additional privacy-related issues in the fall.

Concerns about Fourth Amendment Evasion

Aside from privacy concerns, civil liberties groups have also expressed worries about how government purchases of data broker data can be used to evade the Fourth Amendment. To address this concern, the House Judiciary Committee passed legislation in July that would prohibit data brokers from selling data to law enforcement and federal agencies.

Editorial: Balancing Privacy and Innovation

The roundtable and proposed rules highlight the urgent need to strike a balance between privacy and innovation. Data brokers play a significant role in the ever-expanding digital landscape, fueling “artificial intelligence” and automated decision-making processes that shape our lives. However, the monetization and sale of personal data without individuals’ awareness or consent present serious threats to privacy and individual autonomy.

While it is essential to regulate data brokers and curb their harmful practices, it is equally important to foster innovation and technological advancements. A comprehensive federal privacy legislation that protects individuals’ rights while enabling responsible data use and innovation is paramount.

Protecting Privacy in a Digital World

To safeguard privacy in the digital age, individuals can take several steps:

• Review privacy settings: Regularly review and adjust privacy settings on devices, apps, and social media platforms to limit the collection and use of personal data.
• Use strong, unique passwords: Employ strong and unique passwords for online accounts and consider using a password manager to securely store them.
• Be cautious of sharing personal information: Exercise caution when providing personal information online, particularly on unfamiliar websites or in response to suspicious requests.
• Regularly update software and devices: Keep devices, apps, and software up to date to ensure the latest security patches are installed.
• Be mindful of data sharing: Be selective about the information shared online and consider the potential long-term consequences of sharing personal data.

By adopting these practices and supporting legislative efforts to protect privacy, individuals can play a crucial role in safeguarding their own personal information.