On Tuesday, the Congressional Privacy Caucus sent inquiry letters to nine of the largest data brokers regarding their privacy practices, including how they collect, analyze and sell consumer information. Data brokers are organizations that compile data on consumers and sell that data to third parties for marketing and other purposes. “By combining data from numerous offline and online sources, data brokers have developed hidden dossiers on almost every US consumer,” the letters said. This practice is worrisome to privacy advocates and particularly the Federal Trade Commission (FTC), which has been candid in its statements and in its March report on consumer privacy, stating that the FTC intends to crack down on these unregulated data aggregators. The settlement with Spokeo last month is reportedly the first with others to follow this year. The Privacy Caucus, co-chaired by Reps. Ed Markey (D-Mass.) and Joe Barton (R-Texas), seems to be weighing legislative action to demand oversight and industry accountability. Companies receiving the letter were Axciom, Epsilon (Alliance Data Systems), Equifax, Experian, Harte-Hanks, Intelius, Fair Isaac, Markle and Meredith Corp. The companies have until August 15 to respond.
July 25, 2012