FTC Orders Data Broker Transparency Investigations

As part of the Commission’s report on transparency and improving privacy practices, the FTC has issued orders to investigate nine data broker companies for a study of the industry’s current methods. The study will provide the Commission with further insight into the purposes and use of consumer data needed for their report issued earlier this year, Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers.pdf The Commission’s report outlined voluntary practices for businesses that would offer consumers increased data protection, more control and enhanced transparency for the collection and use of personal consumer information. Often however, consumers are unaware of data brokers who rarely interact with the consumers themselves. Currently there are no laws regarding data brokers to maintain consumer privacy except for purposes such as employment, housing and credit. The data brokers obtain their information from public records or by purchasing the information from other companies and the consumer is largely unaware of their existence, much less how to control or access their rights to the information even when it is offered.