NEW CFPB RULE TARGETS DATA BROKERS SELLING YOUR PRIVATE INFO — What It Means for You
A new rule proposed by the CFPB could restrict data brokers from selling your sensitive information
Learn how this affects consumer rights and how R23 Law’s California Consumer Protection Attorneys are prepared to hold bad actors accountable.
The CFPB Is Cracking Down on Data Brokers—and Consumers Should Pay Attention
In January 2025, the Consumer Financial Protection Bureau (CFPB) proposed a sweeping new rule that could redefine how personal data is handled and sold in the U.S.. At the center of this rule? Data brokers—companies that buy, compile, and sell your sensitive information to third parties, including scammers, stalkers, and foreign actors.
According to CFPB Director Rohit Chopra, data brokers have even sold personal details about military personnel, law enforcement officers, and federal judges. The consequences have been chilling. In one example cited, a federal judge’s son was murdered after an attacker obtained the judge’s address from a data broker.
This proposed regulation could finally bring these entities under the scope of the Fair Credit Reporting Act (FCRA)—a major step forward for consumer privacy, security, and legal accountability.
What the Rule Would Do
The CFPB’s proposal aims to classify data brokers as Consumer Reporting Agencies, subjecting them to the same rules that apply to Equifax, TransUnion, and Experian.
Here’s what that means:
Accuracy Requirements: Brokers would need to ensure their data is correct and used only for legal, "permissible" purposes.
Sensitive Data Protections: Social Security numbers, location data, and transaction histories would be more tightly regulated.
Consumer Consent: Data brokers would need explicit consent to sell or share your information—especially if it’s not related to the original reason it was collected.
These changes are designed to close dangerous loopholes that currently let companies buy and sell your personal data with virtually no oversight.
What This Means for Consumers
The proposed rule creates new protections and legal pathways for victims of data misuse. Key benefits include:
Enhanced Privacy
You’ll have greater control over how your information is collected, used, and sold.
Legal Recourse
If your data is misused, this rule allows consumer protection attorneys like those at R23 Law to sue data brokers under the FCRA.
Abuse Prevention
The regulation could help stop your data from being used for stalking, harassment, identity theft, or fraud.
What You Should Do Now
While the rule is still being finalized, you can take immediate steps to protect your data:
Review your privacy settings on platforms and apps that collect your info.
Be cautious about sharing location and financial data online.
Monitor your credit reports regularly for suspicious activity.
Contact R23 Law’s California Consumer Protection Attorneys if you believe your data has been compromised or sold without your consent.
How R23 Law Can Fight for You
At R23 Law, we advocate for clients whose personal data has been:
Sold without consent
Shared with identity thieves or stalkers
Misused by credit reporting agencies or background check companies
Inaccurately compiled by third-party data brokers
We use state and federal consumer protection laws—including the FCRA—to file lawsuits, recover compensation, and stop the spread of your private information.
📞 Contact R23 Law today to find out how we can hold data brokers accountable and safeguard your digital footprint.
If your privacy has been violated, don’t wait.
