Data brokers are businesses that collect consumers’ personal information and resell or share that information with others.
Data brokers are important participants in the Big Data economy. After its lengthy investigation of the data-broker industry concluded, the Federal Trade Commission (FTC) released its report titled “Data Brokers: A Call For Transparency and Accountability.” The report recommends that legislation be passed requiring companies to disclose more information about the data they collect and allowing consumers greater access to the information collected about them by data brokers. The nine data brokers examined in the F.T.C. report were Acxiom, CoreLogic, Datalogix, eBureau, ID Analytics, Intelius, PeekYou, Rapleaf and Recorded Future.
Photo courtesy of Raw Pixel (Unsplash.com)
The White House previously issued its own report which focused on how companies can gather large amounts of data, which can result in discrimination against certain racial, ethnic or socioeconomic groups. The White House report called for Congress to pass the Consumer Privacy Bill of Rights, which President Obama proposed in 2012. The FTC’s report contains similar terms to the White House report.
A data broker collects and analyzes information about consumers in order to formulate assumptions about them. This “consumer profiling” places customers in certain groups for marketing and other purposes. The information can be sold to companies to determine the types of products and services that should be offered to a person. However, the conclusions drawn from the data can be wrong. Thus, it was concluded that there was the need to allow consumers more control over the data collected about them.
The FTC report states that companies that are collecting such personal information about customers should be transparent and accountable. Privacy advocates believe the FTC should have gone even further. They claim too much responsibility is placed on consumers to monitor the data brokers. Instead, the data brokers should be required to contact the consumer when his or her information is about to be sold.
Companies in the data collection industry have been taking some steps to be more transparent, such as setting up websites that allow a consumer to see some of the information that has been collected and some of the assumptions made from it. However, there is still a long way for data brokers to go before they will be completely “transparent.”
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
