The Consumer Financial Protection Bureau (CFPB) on Tuesday said it intends to propose a rule that would apply the Fair Credit Reporting Act to data brokers and other companies that collect, resell, aggregate, and license consumers’ personal information and financial data — often without their knowledge.
“Reports about monetization of sensitive information — everything from the financial details of members of the U.S. military to lists of specific people experiencing dementia — are particularly worrisome when data is powering ‘artificial intelligence’ and other automated decision-making about our lives,” CFPB Director Rohit Chopra said in a statement.
Evan Weinberger of Bloomberg Law reported the coming proposal would seek to ban the sale of consumer data, including so-called “credit-header data” like a person’s name, address, or Social Security number, for the purpose of targeting advertisements.
The agency is also taking aim at the use of such data to train artificial intelligence. That would include tools that make automated decisions about consumers, such as whether to advance an application, and the development of generative AI chatbots that can respond to consumer questions.
[View source.]
