Lawmakers Gain "Partial Glimpse" into Data Brokers' Business Practices

Members of the Congressional Bi-Partisan Privacy Caucus released the responses of several data brokers to an inquiry into their business practices. Data brokers collect and sell the personal information of consumers to third parties, typically without the knowledge of the consumers themselves. The lawmakers reported that most of the companies did not consider themselves "data brokers," and that "[m]any questions about how these data brokers operate have been left unanswered, particularly how they analyze personal information to categorize and rate consumers." The Federal Trade Commission recently called for data-broke legislation in a report on consumer privacy. In 2005, EPIC brought a complaint against the data broker Choicepoint that produced a $10 million settlement, the largest in the FTC's history for a violation of federal privacy law. For more information, see EPIC: ChoicePoint and EPIC: Federal Trade Commission.

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