FTC Report Recommends More Transparency And Greater Consumer Control With Respect To Personal Data

BACKGROUND:

What is a Data Broker?

• Most consumers are familiar with the term "data broker" – an entity that obtains and shares extensive amounts of consumer information.
• Data brokers sell this information for use in marketing, among other purposes.
• Despite the potential consumer benefits, such as targeted marketing of products and services, these practices can raise privacy concerns.
• The Federal Trade Commission (the "FTC") has characterized data broker activity as "consumer profiling."

FTC TAKES ACTION:

Findings After 18-Month Investigation:

• Data brokers collect consumer data from extensive online and offline sources, often largely without consumers' knowledge.