Summary: CFPB withdrawal of the proposed rule on Harmful Data Broker Practices

NASCUS Summary re: CFPB withdrawal of the proposed rule on Harmful Data Broker Practices

12 CFR Part 1022

The Bureau is withdrawing its proposed rule on Harmful Data Broker Practices effective as of May 15, 2025. The withdrawal notice can be found here.

Summary

The Bureau is withdrawing this proposal in light of updates to Bureau policies.  Although the proposed rule is intended to implement portions of the FCRA, in many respects it did so in a manner not aligned with the Bureau’s current interpretation of the FCRA.  In addition, the Bureau notes that commenters raised concerns related the “rule’s propriety under the plain text of the FCRA and the Bureau’s statutory authority to issue the proposal.”   As a result, the Bureau believes it would be inappropriate to proceed to a final rule.

When and if the Bureau determines it necessary to issue a rule implementing the relevant definitions and provisions of the FCRA, it will propose a new rule and seek public comment.  (May 15, 2025)