Congress and FTC Still Active on Privacy Issues  

Although the headlines continue to focus on the impending "fiscal cliff" tax and spending issues as well as the Newtown, Connecticut tragedy, Congress and the bureaucracy are continuing to target some critical issues of concern to private investigators.

Last week we reported on a "briefing" by the leaders of the Congressional privacy caucus regarding data broker practices. Co-Chairmen Ed Markey (D-MA) and Joe Barton (R-TX) met with a group of data brokers, consumer advocates, Federal Trade Commissioners and academics to discuss how data providers collect and use consumer information. At that meeting Representative Markey said he would press for adoption of legislation next year to control some of the brokers' business practices. FTC Chairman Jon Leibowitz also discussed the Commission's ongoing interest in data collection.

Yesterday, the FTC followed up on Chairman Leibowitz' statement and ordered nine brokers to provide very detailed and specific information about:

• the nature and sources of the consumer information the data brokers collect;
• how they use, maintain, and disseminate the information; and
• the extent to which the data brokers allow consumers to access and correct their information or to opt out of having their personal information sold.

Earlier in the year both the privacy caucus and the Senate Committee on Commerce, Science and Transportation wrote brokers and asked for similar information. The FTC order has the force of law and demands that answers respond directly to each question asked.

NCISS is concerned about this focus on data brokers not only to assure that private investigators not be classified as brokers, but also to make certain that brokers remain a valuable resource for the profession. In its statement when issuing the subpoena, the FTC said:

"There are no current laws requiring data brokers to maintain the privacy
of consumer data unless they use that data for credit, employment,
insurance, housing, or other similar purposes."

The implication of the statement may be that the Commission will be examining possible controls over the non-Fair Credit Reporting Act databases maintained by information brokers.

Senate Committee Questioning Credit Reporting

The Senate Committee on Subcommittee on Financial Institutions and Consumer Protection is holding a hearing today on credit reports largely focusing on the accuracy of reports. Subcommittee Chairman Sherrod Brown (D-OH) said:

"Problems abound - even for consumers with nearly flawless credit."

And Assistant Director Corey Stone of the Consumer Financial Protection Bureau reported that the Bureau is examining the issue. He reported that when consumers dispute items in a credit report their evidence does not always get back to the credit bureau.

An attorney for the National Consumer Law Center took the opportunity to urge Congress to restrict the use of credit reports for employment purposes. Legislation to limit the use of credit reports has been pending for the past two terms of Congress. The Equal Employment Opportunity Commission has also proposed such restrictions but has not issued a final rule as yet.

Attention to this issue is likely to continue into the next Congress.

House to Vote on Legislation to Remove SSN From Medicare Cards

The House of Representatives is scheduled to vote today on HR 1509 to remove Social Security Numbers from Medicare cards. NCISS has been supportive of legislation that would limit SSN's numbers on documents carried by consumers as a common sense method of helping reduce identity theft.

NCISS will remain vigilant during these last days of the 112th Congress to protect the interests of our members and will keep you informed.