The Federal Trade Commission has proposed sweeping new regulations that would require all data brokers operating in the United States to honor a universal opt-out mechanism. Under the proposed rules, consumers could submit a single request through an FTC-managed portal to remove their personal information from all registered data broker databases.
The proposal also mandates that data brokers register with the FTC, disclose the categories of data they collect, and provide annual transparency reports detailing the volume of consumer data they buy and sell.
Privacy advocates have praised the proposal as a significant step toward comprehensive federal privacy legislation, while industry groups argue the compliance costs could force smaller data brokers out of business.
