Have you ever felt like your digital life is being tracked, including your web searches and everything you buy online? Well, that's totally true. Entire industries are built around making money from personal information collected online. Companies known as data brokers collect data and sell it to other parties.
California tried to address this issue several years ago by giving consumers the right to ask companies to delete their information. But actually doing it is a hassle. The consumer must make his request one company at a time.
A bill passed by the California Legislature this month aims to change that by making one request applicable to all data brokers. SB 362, also known as the Takedown Act, would further require brokers to register with the state. The bill currently needs Governor Gavin Newsom's signature to become law.
Jessica Rich is a senior consumer protection policy advisor at the law firm Kelly Dry and a former director of the Federal Trade Commission's Bureau of Consumer Protection. She explained the importance of this issue to Marketplace's Lily Jamali.
Below is an edited transcript of their conversation.
Jessica Rich: One of the main concerns is that data brokers operate behind the scenes, collecting and selling data about consumers without their knowledge. Meanwhile, this data can be used to determine who gets a particular offer or price, who is classified as at risk of fraud, who is eligible for government benefits, etc. Masu. In some cases, stalkers have purchased this data to find their victims.
Lily Jamali: So how can this California law, the Takedown Act, help consumers who are concerned about their data being used in this way?
rich: This will give consumers important new rights. Consumers will have access to a one-stop shop where they can tell all data brokers operating in their state to delete their information and no longer collect their information. Meanwhile, the often very productive uses of data are also cut off, allowing businesses to verify consumers and governments to verify who is eligible for various benefits. You will be able to understand.
Jamari: Now, when we step back and look at current removal laws, who are the winners and losers?
rich: I think consumers are often unaware of the existence of these companies, but there is definitely a need for greater accountability and rights for consumers. However, data brokers believe this action is a blunt instrument that goes too far, potentially cutting off all services provided by data brokers. That way, you might incur some losses here.
Jamari: And this will affect California if the bill becomes law. But what does its enactment mean for consumers outside of California?
rich: Well, it generally affects California consumers. However, it can be very difficult for companies to set up different operations in different states. Therefore, it is likely that these effects will spread to other states. This also comes at a time when we are seeing action from the White House, Congress, the FTC, and the administration on this issue. [Consumer Financial Protection Bureau], among others. Therefore, this could be the start of a long-term trend.
Learn more
To learn more about Jessica Rich's views, read her analysis of the bill and data brokers' arguments against it. You can also read more about the federal government's efforts to rein in the data broker industry, which she mentioned at the end of her interview.
The Electronic Frontier Foundation, a digital rights group, is a leading supporter of the Takedown Act. The group recently published an article highlighting how this law could protect consumers from data brokers.
