Shane Snider, Senior Writer, InformationWeekDecember 6, 20244 Min Readwsf AL via Alamy StockThe Consumer Financial Protection Bureau (CFPB) on Tuesday signaled it would move ahead with a plan to expand the Fair Credit Reporting Act (FCRA) to include data brokers, which would limit companies ability to sell sensitive personal information.The rule would use FCRA to police the sale of financial data and credit scores, Social Security numbers, addresses, and phone numbers. CFPB says the protections are especially important with the rise of artificial intelligence.By selling our most sensitive personal data without our knowledge or consent, data brokers can profit by enabling scamming, stalking, and spying, Rohit Chopra, CFPBs director, said in a statement. The CFPBs proposed rule will curtail these practices that threaten our personal safety and undermine Americas national security.But the plan could hinge on President-elect Donald Trumps cost-cutting measures. Trump tapped Elon Musk and entrepreneur Vivek Ramaswamy to lead the Department of Government Efficiency with the goal of cutting waste and fraud. Musk directly attacked the CFPB last week on X (formerly Twitter), calling for action to Delete CFPB, adding, There are too many duplicative regulatory agencies.The data broker industry is a big business with a massive lobbying spend -- doling out $143 million on lobbying from 2020-2022, according to research from data privacy firm Incogni. The CFPBs budget reached $729 million in 2024 with a total of 1,758 employees. The agency, which was the brainchild of US Sen. Elizabeth Warren (D-MA), boasts $19.6 billion in consumer relief since its inception in 2011.Related:Adopted in 1970, FCRA was a landmark piece of legislation aimed at protecting consumer privacy initially aimed at financial institutions. The proposed rule would broaden the law to include data brokers and apply the same standards to consumer reporting agencies like Equifax, Experian, and Transunion. The new rule would apply to data brokers obtaining personal data relating to credit and financial assessment, making them demonstrate permissible purpose" for sharing that information, and limiting use without consent.What the Incoming Administration Could Mean for CFPBAdam Rust, director of financial services for the Consumer Federation of America, tells InformationWeek in a phone interview that the proposed rule would be a major win for consumers.People shouldnt have to worry about their data being sold everywhere just because they want to apply for a loan, Rust says. [CFPBs proposed rule] actually addresses a real-world problem that affects all kinds of people We have all kinds of problems with data brokers relating to how they store information, and thats led to widespread breaches.Related:Rust thinks the issue should be nonpartisan, but CFPB has detractors who believe the governments role should be limited. There are enemies of the CFPB because the CFPB is so successful at doing what it is designed to do. Billionaires dont like the CFPB because they have to return billions of dollars to consumers. The financial institutions that are held accountable because of the CFPB are doing their best find friends in Washington D.C. who can rally to their cause.While Musks comments toward CFPB put the agency in cost-cutting crosshairs, finding enough support to kill its consumer protection efforts could be a difficult task. Data privacy efforts, especially concerning sensitive information, have gained broad support.Last year, Sen. Marco Rubio (R-FL) fought for a bill to protect data of military members, preventing sale by data brokers to adversarial nations. The bill didnt reach a vote, but data privacy remains a hot-button topic. Rubio is Trumps choice for Secretary of State.A Bipartisan Cause?While members of the new administration may be gunning to trim operations like CFPB, they may have a hard time getting the 60 Senate member votes needed to nix the agency. Republicans won a majority of the Senate seats in November, but they hold 53 seats and could still be stymied by filibuster.Related:Emily Peterson-Cassin, director of Demand Progress Education Fund, said protections that keep data out of the hands of threat actors should be bipartisan.The CFPB should be applauded for standing up to data brokers and working to rein in the sale of sensitive information about us, she said in a statement. All this data ends up in the hands of advertisers, scammers, stalkers and even foreign governments. This groundbreaking rule offers a needed solution for Americans who are sick and tired of being inundated by scam texts, calls and emails She added that the proposed rule would be a major win for the privacy rights of Americans and is the kind of bipartisan, commonsense action that should be protected and encouraged by politicians in both parties.Read more about:RegulationAbout the AuthorShane SniderSenior Writer, InformationWeekShane Snider is a veteran journalist with more than 20 years of industry experience. He started his career as a general assignment reporter and has covered government, business, education, technology and much more. He was a reporter for the Triangle Business Journal, Raleigh News and Observer and most recently a tech reporter for CRN. He was also a top wedding photographer for many years, traveling across the country and around the world. He lives in Raleigh with his wife and two children.See more from Shane SniderNever Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.SIGN-UPYou May Also LikeWebinarsMore WebinarsReportsMore Reports