BURSTThe Consumer Financial Protection Bureau (CFPB) is withdrawing a Biden-era proposal that sought to rein in the sale of Americans’ personal information by data brokers.
In a federal register notice filed Wednesday morning, acting CFPB Director Russell Vought said the agency had determined the rule was “not necessary or appropriate at this time,” pointing to “updates to Bureau policies.”
The rule, proposed in December, sought to treat data brokers as consumer reporting agencies under the Fair Credit Reporting Act (FCRA), subjecting them to additional requirements.
Former CFPB Director Rohit Chopra argued the rulemaking was necessary to address national security, surveillance and criminal exploitation risks associated with data broker practices.
However, Vought said the rule was “not aligned with Bureau’s current interpretation of the FCRA, which it is in the process of revising, and its changed policy objectives.”
Watchdog groups slammed the move by the administration, arguing it leaves consumers more vulnerable.
“Data brokers collect a treasure trove of sensitive information about virtually every American and sell that information widely, including to scammers looking to rip off consumers,” Matt Schwartz, a policy analyst at Consumer Reports, said in a statement.
“Dropping these proposed limits will leave consumers unprotected and make it more likely that sensitive information like their Social Security numbers will wind up in the hands of crooks,” he continued. “This decision is just the latest troubling move by this administration to abandon the CFPB’s critical mission to protect consumers.”
The data broker proposal is the latest rulemaking at the agency to be walked back in recent days. Vought withdrew Friday nearly 70 policy statements, interpretive rules, advisory opinions and guidance issued by the consumer watchdog since its creation in 2011.
President Trump also signed congressional rollbacks of two Biden-era CFPB rules last week that sought to cap overdraft fees and ramp up oversight of digital wallets and payment apps.
The CFPB has been in a state of turmoil under Vought’s leadership, as the acting director has halted work, closed the agency’s headquarters and attempted to conduct mass layoffs.
The Trump administration has been accused of attempting to effectively dismantle the agency by the National Treasury Employees Union, which has sued to block officials' recent efforts.
After the agency moved to lay off about 90 percent of employees last month, the courts stepped in and blocked the cuts from going forward.