Vermont passes first first law to crack down on data brokers

TechCrunch | 5/27/2018 | Devin Coldewey
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While Facebook and Cambridge Analytica are hogging the spotlight, data brokers that collect your information from hundreds of sources and sell it wholesale are laughing all the way to the bank. But they’re not laughing in Vermont, where a first-of-its-kind law hems in these dangerous data mongers and gives the state’s citizens much-needed protections.

Data brokers in Vermont will now have to register as such with the state; they must take standard security measures and notify authorities of security breaches (no, they weren’t before); and using their data for criminal purposes like fraud is now its own actionable offense.

Data - Brokers - Idea - Companies - Side

If you’re not familiar with data brokers, well, that’s the idea. These companies don’t really have a consumer-facing side, instead opting to collect information on people from as many sources as possible, buying and selling it amongst themselves like the commodity it has become.

This data exists in a regulatory near-vacuum. As long as they step carefully, data brokers can maintain what amounts to a shadow profile on consumers. I talked with director of the World Privacy Forum, Pam Dixon, about this practice.

Credit - Score - Fair - Credit - Reporting

“If you use an actual credit score, it’s regulated under the Fair Credit Reporting Act,” she told me. “But if you take a thousand points like shopping habits, zip code, housing status, you can create a new credit score; you can use that and it’s not discrimination.”

And while medical data like blood tests are protected from snooping, it’s not against the law for a company to make an educated guess your condition from the medicine you pay for at the local pharmacy. Now you’re on a secret list of “inferred” diabetics, and that data gets sold to, for example, Facebook, which combines it with its own metrics and allows advertisers to target it.

Facebook

Oh yes, Facebook does that. Or did do it for...
(Excerpt) Read more at: TechCrunch
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