The Consumer Financial Protection Bureau (CFPB), a U.S. agency for consumer protection, issued new recommendations on cybersecurity and data privacy under the Fair Credit Reporting Act, which regulates companies that prepare consumer reports and collect data on consumer reports regarding loans, insurance, housing and employment. The Act aims to protect the consumer’s right to privacy.
According to the new recommendations, the companies are required to adapt their method of using and disclosing credit reports and in-context reports.
In October 2021, the CFPB ordered big techs, including Amazon, Apple, Facebook (Meta), and Google, to provide information on their plans regarding the payment system to examine how they use consumer data.
The CFPB wants to hold companies accountable for illegal debt collection and false identification of consumers. It is a step towards ‘taming’ the big techs and enforcing compliance that has been steadily promoted by the Congress.
Source:
https://www.consumerfinance.gov/about-us/newsroom/cfpb-issues-advisory-to-protect-privacy-when-companies-compile-personal-data/