Information Broker - Privacy Concerns and Regulation

Privacy Concerns and Regulation

Privacy Rights Clearinghouse (PRC), a nonprofit consumer organization in United States, published an online FAQ about information brokers. PRC also maintains a list of information brokers, with links to their privacy policies, terms of service, and opt-out privisions.

Introduced by Rep. Bobby Rush on Apr 30, 2009, H.R. 2221 passed through the United States House of Representatives in the 111th Congress, and was revived by the 112th Congress as H.R. 1707. The bill contains a number of requirements for auditing and verification of accuracy of data held by information brokers, and additional measures in the case of a security breach. The bill also gives identified individuals the means and opportunity to review and correct the data held that relates to them.

In March 2012, the Federal Trade Commission issued a report advising businesses and consumers on the protection of privacy, data and digital security. The document, "Protecting Consumer Privacy in an Era of Rapid Change," recommended that Congress "consider enacting targeted legislation to provide greater transparency for, and control over, the practices of information brokers." It noted a "lack of transparency about the practices of information brokers, who often buy, compile, and sell a wealth of highly personal information about consumers," unbeknownst to them. Finding that consumers are "often unaware of the existence of these entities, as well as the purposes for which they collect and use data," the report recommended legislation giving consumers more knowledge of and control over information brokers' use of their data.