What information do data brokers have on consumers, and how do they use it? : hearing before the Committee on Commerce, Science, and Transportation, United States Senate, One Hundred Thirteenth Congress, first session, December 18, 2013.

In this report, the Federal Trade Commission discusses the results of an in-depth study of nine data brokers. These data brokers collect personal information about consumers from a wide range of sources and provide it for a variety of purposes, including verifying an individual's identity, marketing products, and detecting fraud. Because these companies generally never interact with consumers, consumers are often unaware of their existence, much less the variety of practices in which they engage. By reporting on the data collection and use practices of these nine data brokers, which represent a cross-section of the industry, this report attempts to shed light on the data broker industry and its practices. For decades, policymakers have expressed concerns about the lack of transparency of companies that buy and sell consumer data without direct consumer interaction. Indeed, the lack of transparency among companies providing consumer data for credit and other eligibility determinations led to the adoption of the Fair Credit Reporting Act ("FCRA"), a statute the Commission has enforced since its enactment in 1970. The FCRA covers the provision of consumer data by consumer reporting agencies where it is used or expected to be used for decisions about credit, employment, insurance, housing, and similar eligibility determinations; it generally does not cover the sale of consumer data for marketing and other purposes. While the Commission has vigorously enforced the FCRA, 1 since the late 1990s it has also been active in examining the practices of data brokers that fall outside the FCRA.

This book is the result of a study of nine data brokers, representing a cross-section of the industry, undertaken by the Federal Trade Commission (FTC) to shed light on the data broker industry. Data brokers obtain and share vast amounts of consumer information, typically behind the scenes, without consumer knowledge. Data brokers sell this information for marketing campaigns and fraud prevention, among other purposes. Although consumers benefit from data broker practices which, for example, help enable consumers to find and enjoy the products and services they prefer, data broker practices also raise privacy concerns. The FTC found that data brokers operate with a fundamental lack of transparency. The Commission recommends that Congress consider enacting legislation to make data broker practices more visible to consumers and to give consumers greater control over the immense amounts of personal information about them collected and shared by data brokers.

Consumers are conducting more and more of their daily business online and through their mobile devices. They use the Internet and their smart phones and tablets to make purchases, research medical conditions, plan vacations, interact with friends and relatives, do their jobs, map travel routes, and otherwise pursue their interests. With these activities, consumers are creating a voluminous and unprecedented trail of data regarding who they are, where they live, and what they own. These changes have fuelled the growth of a multi-billion dollar industry that largely operates hidden from consumer view. A wide range of companies known as "data brokers" collect and maintain data on hundreds of millions of consumers, which they analyse, package, and sell generally without consumer permission or input. This book discusses the Date Broker industry in further detail, and also addresses privacy laws applicable to consumer information held by resellers, gaps in the law that may exist, and views on approaches for improving consumer data privacy.

Consumers are conducting more and more of their daily business online and through their mobile devices. They use the Internet and their smart phones and tablets to make purchases, research medical conditions, plan vacations, interact with friends and relatives, do their jobs, map travel routes, and otherwise pursue their interests. With these activities, consumers are creating a voluminous and unprecedented trail of data regarding who they are, where they live, and what they own. These changes have fueled the growth of a multi-billion dollar industry that largely operates hidden from consumer view. A wide range of companies known as "data brokers" collect and maintain data on hundreds of millions of consumers, which they analyze, package, and sell generally without consumer permission or input. This book discusses the Date Broker industry in further detail, and also addresses privacy laws applicable to consumer information held by resellers, gaps in the law that may exist, and views on approaches for improving consumer data privacy. (Imprint: Nova)