In Long-Awaited Report On Data Brokers, FTC Expresses Concerns Over Transparency And Consumer Control

The Federal Trade Commission (FTC) has issued its long-awaited report on data brokers, concluding that they operate with a "fundamental lack of transparency," urging Congress to enact legislation to further regulate data brokers so that consumers have more control over their own personal information, and calling on the industry itself to adopt several best practices.

The Bottom Line

The extent to which the FTC seeks to independently focus its attention on data brokers remains to be seen. However, it is important to emphasize that, given the report's broad characterization of data brokers as "companies that collect consumers' personal information and resell or share that information with others," businesses in addition to those traditionally viewed as "data brokers" should take careful note of this report.