CFPB Will Withdraw Biden-Era Proposed Data Broker Rule
The Consumer Financial Protection Bureau will withdraw the Biden administration’s proposed data broker rule, the bureau announced in a notice scheduled for publication Thursday in the Federal Register. Industry groups requested the withdrawal in April comments (see 2504030059).
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The CFPB said “in light of updates to Bureau policies” it's withdrawing the proposed rule. “Although the proposed rule intended to implement portions of the Fair Credit Reporting Act, in many respects it did so in a manner not aligned with the Bureau’s current interpretation of the FCRA, which it is in the process of revising, and its changed policy objectives.”
The CFPB cited concerns from commenters, including questions about the proposed rule complying with the scope of FCRA authority: “At least one commenter raised concerns related to the proposed rule’s propriety under the plain text of the FCRA, and there were similar questions as to the Bureau’s statutory authority to issue many of the proposals. In light of these and other comments, the Bureau believes it would be inappropriate to proceed to a final rule.”
In December, CFPB issued an NPRM that would have expanded FCRA to include activities of data brokers and their interactions with consumer data.