On May 15, the CFPB published a Federal Register notice withdrawing its proposed rule on Protecting Americans from Harmful Data Broker Practices (Regulation V). The Bureau decided that this rulemaking was not necessary at this time due to new Bureau policies, as well as concerns raised by commenters regarding the rule’s alignment with the FCRA and the Bureau’s statutory authority. As previously covered by InfoBytes, the proposed rule would have implemented certain FCRA provisions impacting consumer reports and consumer reporting agencies to limit the sale of consumer information for non-FCRA purposes, such as marketing.

The Bureau’s decision to withdraw the proposed rule reflects public comment and its revised policy objectives. The Bureau noted at least one commenter questioned the propriety of the proposed rule under the plain text of the FCRA. The Bureau concluded that moving forward with a final rule would be inappropriate.

Visit our resource center, CFPB Pause: Where From Here?, to stay on top of the latest and what it may mean for the federal and state regulatory and enforcement landscape.