The recent proposal by the Consumer Financial Protection Bureau (CFPB) to protect consumers from data brokers may face challenges due to an impending change in leadership within the White House. CFPB Director Rohit Chopra emphasized that the proposed rule targets brokers who sell “our most sensitive personal data without our knowledge or consent” and enable activities such as scamming and spying. However, the viability of this proposal is in doubt following the election of President-Elect Donald Trump.
Chopra, nominated by President Biden in 2021, was confirmed by a party-line vote in the Senate. With Trump’s upcoming tenure, the appointment of a replacement for Chopra appears likely. The CFPB’s Notice of Proposed Rulemaking represents a preliminary step toward implementing regulations, but final decisions will emerge after Trump assumes office. Feedback on the proposal is expected by March 3, 2025.
Senator Ron Wyden criticized the possibility, stating: “Unfortunately, it will be up to Trump’s CFPB to finalize this proposed rule, and he and his billionaire donors are intent on shutting this agency down to take away a key advocate for American consumers.” Wyden added that the proposal addresses a 2021 request to mitigate a loophole allowing data brokers to sell personal information to various parties, posing risks to individual privacy and national security.
The CFPB could face significant changes, including potential dismantling under a Republican-led administration and Congress. Consumer advocacy organizations have expressed concerns about the agency being targeted, aligning with early discussions among Republicans and financial sector proponents. As the Washington Post reported, the GOP seeks to limit the CFPB’s powers and funding, resonating with the interests of banks and other financial entities opposed to previous regulations.