Proposed Data Broker Rule Would Have Protected Servicemembers and their Families from Fraud, Blackmail
Washington. D.C. — On Wednesday, Wired reported that the Trump administration plans to withdraw a proposed rule that would rein in data brokers. Under the proposed rule, data brokers—who regularly collect and sell detailed, personal information on all Americans—would be subject to some of the same standards as other companies that handle sensitive financial information on consumers like credit bureaus. A 2023 study found that it is shockingly easy for data brokers to obtain this sensitive information, including buying it for mere cents. This data could easily be exploited by scammers and foreign governments seeking to target military members. Demand Progress Education Fund was part of a coalition that called on the CFPB early on to take action on this issue and also published an op-ed with Common Defense highlighting how unregulated data brokers threaten the privacy and security of servicemembers and veterans.
The following is a statement from Demand Progress Education Fund Executive Director Sean Vitka:
“The Trump administration has chosen the profits of predatory data brokers over the privacy and safety of servicemembers, veterans and their families. Now advertisers, scammers, and even hostile foreign governments will continue to freely hoard and sell their most private information. Unregulated data brokers routinely collect information about our families, our jobs and our personal lives in order to sell it to scammers. The withdrawn proposal would have placed new safeguards on how data brokers would be allowed to use this extremely sensitive information. By withdrawing this proposed rule, hundreds of millions of people will be left vulnerable to online predators and blackmailers sending out countless scam texts, calls and emails.”
The following is a statement from Common Defense Political Director Naveed Shah:
“This rule was critical to protecting Americans’ privacy by holding data brokers to the same standards as companies handling sensitive financial information, like credit bureaus. Without it, data brokers can continue profiting by selling personal information to unscrupulous actors, including scammers and foreign governments, putting millions at risk. The decision prioritizes corporate profits over the safety and security of individuals, including vulnerable groups like servicemembers and veterans. Common Defense urges the administration to reconsider and reinstate measures to safeguard our personal data from exploitation.”