FTC warns data brokers of possible privacy violations

10 companies appeared to give out consumer data without complying with federal privacy laws

The Federal Trade Commission (FTC) has put data brokers on notice, with a series of letters alerting 10 companies that they may be running afoul of federal privacy law.

Posing as individuals or representatives of various companies, FTC staff members called 45 brokers and asked for consumer information, purportedly as part of credit, insurance eligibility or employment checks. Data brokers that collect, distribute or sell consumer data constitute consumer reporting agencies under the Fair Credit Reporting Act (FCRA). As such, they must reasonably verify the identity of organizations seeking information about consumers.

Alanna Byrne

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