US regulatory body set to unveil measures for 'Surveillance Industry'

The U.S. Consumer Financial Protection Bureau (CFPB) is poised to introduce fresh regulations aimed at companies involved in collecting and selling personal data. This move comes as part of the Biden administration's efforts to tighten the reins on the practices of data brokers.

In March, the CFPB launched a public investigation into the operations of companies such as credit bureaus and background screening agencies. Furthermore, their findings suggested the need for tighter privacy safeguards, as the data brokers reported consumers in distress to companies that subsequently targeted them with predatory debt products.

Additionally, prior to the announcement on Tuesday, CFPB officials stated that the proposal would broaden the number of companies currently subject to the Fair Credit Reporting Act — a 1970 law governing the privacy of consumer data provided to lenders — to include the use of data derived from payment histories, personal income, and criminal records.

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Last year, President Joe Biden sought the US Federal Trade Commission'shelp in protecting the data of women seeking reproductive healthcare, who may face law enforcement action in some states. The FTC has also filed a lawsuit against a firm based in Idaho for selling mobile phone geolocation data, alleging that it might be tracked to abortion clinics, churches, and addiction treatment programs.

According to Rohit Chopra, head of the US Consumer Financial Protection Bureau, data brokers' behavior can be "particularly worrisome" because the sensitive data driving the usage of artificial intelligence can be obtained from military personnel, persons suffering from dementia, and others.

"The CFPB will be taking steps to ensure that modern-day data brokers in the surveillance industry know that they cannot engage in illegal collection and sharing of our data," Reuters quoted him assaying.

(With inputs from agencies)

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