CFPB pulls data broker rule in win for industry, setback for consumer advocates

The Consumer Financial Protection Bureau (CFPB) has pulled back a draft privacy rule that would have required businesses to take more steps before selling consumers’ financial and personal data.

The draft rule, cheered by consumer advocates and opposed by many financial institutions, advertisers and insurers, as well as data brokers, would have required companies that buy, sell, and share people’s financial and personal data, such as income and Social Security numbers, to obtain explicit consent before doing so.

Selling information about judges and law enforcement also would be restricted, and selling data to purchasers affiliated with Russia, China, and other nations of concern would be prohibited.