FTC Report Finds Transparency Lacking In Data Broker Industry, Urges Legislation

After examining the practices of nine data brokers representative of the industry, the Federal Trade Commission on May 27 issued a report pointing to “a fundamental lack of transparency about data broker industry practices” and urged Congress to consider enactment of legislation.

The report, “Data Brokers: A Call for Transparency and Accountability,” defined data brokers as “companies that collect consumers’ personal information and resell or share that information with others.”

During a press conference, FTC Chairman Edith Ramirez added an important component to that definition—that these companies do not interact directly with consumers.

“You may not know them,” she cautioned, ...