In Wired

The CFPB received more than 600 comments from the public this year concerning the proposal, titled Protecting Americans from Harmful Data Broker Practices. The rule was crafted to ensure that data brokers obtain Americans’ consent before selling or sharing sensitive personal information, including financial data such as income. US credit agencies are already required to abide by such regulations under the Fair Credit Reporting Act, one of the nation’s oldest privacy laws.

In its notice, the CFPB’s acting director, Russell Vought, wrote that he was withdrawing the proposal “in light of updates to Bureau policies,” and that it did not align with the agency’s “current interpretation of the FCRA,” which he added the CFPB is “in the process of revising.”

[…] 

Vought, who also serves as director of the White House Office of Management and Budget, received a letter on Monday from the Financial Technology Association (FTA) calling for the rule to be withdrawn, claiming it exceed the agency’s statutory mandate and would be “harmful to financial institutions’ efforts to detect and prevent fraud.” The FTA is a US-based trade organization that represents the interests of fintech companies and their executives.

Privacy advocates have long pressed regulators to use the Fair Credit Reporting Act to crack down on the data broker industry. Common Defense, a veteran-led nonprofit, urged the CFPB to take action in November, blaming data brokers for recklessly exposing sensitive information about US service members that placed them at “substantial risk” of being blackmailed, scammed, or targeted by hostile foreign actors.

In a statement, Internet Archive director of library services Chris Freeland expressed disappointment “in today’s opinion about the Internet Archive’s digital lending of books that are available electronically elsewhere. We are reviewing the court’s opinion and will continue to defend the rights of libraries to own, lend, and preserve books.”

Dave Hansen, executive director of the Author’s Alliance, a nonprofit that often advocates for expanded digital access to books, also came out against the ruling. “Authors are researchers. Authors are readers,” he says. “IA’s digital library helps those authors create new works and supports their interests in seeing their works be read. This ruling may benefit the bottom line of the largest publishers and most prominent authors, but for most it will end up harming more than it will help.”

The Internet Archive’s legal woes are not over. In 2023, a group of music labels, including Universal Music Group and Sony, sued the archive in a copyright infringement case over a music digitization project. That case is still making its way through the courts. The damages could be up to $400 million, an amount that could pose an existential threat to the nonprofit.