CFPB Proposes To Expand Fair Credit Reporting Act Implementing Regulations To Target Data Brokers

On December 13, 2024, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register a proposed rule that would revise Regulation V,¹ the CFPB's regulation implementing the Fair Credit Reporting Act (FCRA). The proposed rule would impose new limitations and obligations for many entities that collect, aggregate, sell, resell, license, enable the use of, or otherwise share consumer information with other parties (so called "data brokers"), and clarify that these data brokers are subject to the requirements of FCRA.

This rulemaking was originally announced in 2023 by the CFPB's Small Business Advisory Review Panel for Consumer Reporting Rulemaking. This advisory panel was constituted pursuant to the Small Business Regulatory Enforcement Fairness Act 1996 (SBREFA), which requires federal agencies to collect the advice and recommendations of small businesses likely to be affected by a proposed rulemaking. The publication of the proposed rule