The Federal Trade Commission proposed sweeping new regulations today that would require data brokers to obtain explicit consumer consent before collecting, selling, or sharing personal information. The proposed rules would also mandate that data brokers maintain public registries of the data categories they trade and provide consumers with free tools to view and delete their personal data on demand.
The proposal targets an industry estimated to generate $250 billion annually by collecting and selling information including location data, browsing habits, purchase histories, and health-related information. Current federal law imposes few restrictions on data brokers, leaving consumers with limited visibility into how their personal information is being monetized.
Industry trade groups criticized the proposal as overly broad, arguing it would stifle legitimate business uses of data including fraud prevention and marketing analytics. Privacy advocates, however, praised the FTC for taking action that Congress has failed to pass legislatively. FTC Chair Lina Khan said the rules are necessary to address a marketplace where consumers have become products without their meaningful knowledge or consent. A 90-day public comment period begins May 1.
