The Federal Trade Commission (FTC) issued orders requiring nine data brokerage companies to provide the agency with information about how they collect and use data about consumers. The agency will use the information to study privacy practices in the data broker industry and to make recommendations on improved privacy practices. Earlier this year, the FTC called on the data broker industry to improve the transparency of its practices as part of a Commission report. In the Privacy Report, the FTC set forth a voluntary framework of best practices for businesses based on the concepts of privacy by design, consumer control, and increased transparency for the collection and use of consumer data. The Report noted that while data brokers collect, maintain, and sell a wealth of information about consumers, they often do not interact directly with consumers. Rather, they get information from public records and purchase information from other companies. As a result, consumers are often unaware of the existence of data brokers as well as the purposes for which they collect and use consumers’ data. There are no current laws requiring data brokers to maintain the privacy of consumer data unless they use that data for credit, employment, insurance, housing, or other similar purposes.
