Rockefeller Queries Finance, Health, Family Websites in Expanding Investigation into Data Brokers

Rockefeller began an investigation into the topic last October (WID Oct 11 p9). Several data brokers have refused to disclose to the committee their specific sources of consumer data, “preventing the Committee from fully understanding how the industry operates,” wrote Rockefeller. The latest effort should “illuminate how data brokers collect information,” he said. The privacy policies of the websites he contacted “appear to leave room for sharing a consumer’s information with data brokers or other third parties,” said the release. In October, he asked for further information from Acxiom, Experian, Equifax, TransUnion, Epsilon, Reed Elsevier (LexisNexis), Datalogix, Rapleaf and Spokeo. A Datalogix spokesman said “we have provided all information requested, and we look forward to continuing to collaborate in the future should additional questions arise.” A Reed Elsevier spokesman said it fully cooperated with the committee. None of the other companies commented. Rockefeller said he wants to give consumers the ability to make informed decisions about providing their information to websites that may collect and sell that information to data brokers.

The websites he queried were: Condé Nast’s self.com, About.com, Time Inc.’s health.com, bankrate.com, realage.com, cafemom.com, The Motley Fool’s fool.com, Young Money’s financeyoungmoney.com, American Media Inc.’s mensfitness.com, ValueClick Brands’ investopedia.com, ehealthforum.com and babycenter.com. He asked the website companies whether and how they collect personally identifiable information online, according to a sample letter posted online (http://1.usa.gov/1b5OOa5). He also asked whether they share that information with third parties, and if so, with whom. He solicited clear descriptions of the mechanisms through which information could be shared, and asked for details about any limitations the website put on data sharing.

"At Condé Nast, our relationships with consumers are paramount and we take their privacy very seriously,” a spokesman said by email. “We've received the Committee’s inquiry seeking more information about third party data collection and management and will be answering it shortly.” American Media, which confirmed getting Rockefeller’s query, sees “the trust of our communities” as “paramount,” said a spokesman by email. “We applaud the Senator and the Committee for their concern and efforts in regard to consumer privacy and security."

Rockefeller’s investigation has shown that data brokers use information to group consumers into categories such as “Rural and Barely Making It” or “Ethnic Second-City Strugglers,” and that the companies sell those bundles to marketers, he said. “Regardless of whether such characterizations are positive, negative or erroneous, the process of determining these characterizations is not transparent to the consumer and is beyond the consumer’s control.”

"Rockefeller’s leadership on consumer privacy is the strongest expression of concern over the growing threats posed by the sprawling digital data broker industry,” said Center for Digital Democracy Executive Director Jeff Chester. He told us Rockefeller has cast a “powerful public spotlight” on the activities of data brokers, and said the letter would spur more regulatory action from Congress, the FTC and CFPB, as they work to determine the implications of “data mining industries.” It’s “time for Congress to protect a consumer’s most sensitive personal information, especially about their finances and health,” said Chester.

"The companies targeted in Chairman Rockefeller’s ‘data broker’ investigation have submitted tens of thousands of pages explaining their business models and the incredible value that responsible data use provides to consumers,” said Peggy Hudson, senior vice president-government affairs at the Direct Marketing Association, in a statement. “It is unfortunate that after receiving all of that evidence, Chairman Rockefeller has chosen to single out a couple of poorly named marketing categories as a reason to demagogue an industry that is the brightest beacon of American innovation -- creating products and services that consumers love and demand -- and the engine of the U.S. economic and employment growth."

Rockefeller had no timeline planned for a hearing or further legislation on the subject, said a committee aide. Representatives for now-Sen. Ed Markey, D-Mass., had no comment on whether he would continue to pursue the subject after leaving the House. A representative for Rep. Joe Barton, R-Texas, who co-chairs the Bipartisan Privacy Caucus, said he was not working with Rockefeller, but “we are planning to continue the discussion soon.”

Data collection companies have faced a number of regulatory efforts over the past year from Congress, the FTC and CFPB. In December, the FTC issued orders seeking information about data-collection practices from nine data brokers, including Acxiom, Coreogic, Datalogix, eBureau, ID Analytics, Intelius, PeekYou, Rapleaf and Recorded Future (WID Dec 19/12 p1). That followed a congressional hearing on the subject (WID Dec 14 p1) and congressional inquiries from then-Rep. Markey in August 2012 (WID Nov 9 p1) and Rockefeller in October 2012. Industry representatives had asked the FTC and Congress to consider a narrower definition for data brokers. Rockefeller’s announcement also follows Tuesday calls from CDD for more oversight of a new operating system from the data collection firm Acxiom. The system would enable “marketers to connect all types of traditionally disconnected data and -- for the first time -- to create a truly singular view of the consumer,” Acxiom said Tuesday (WID Sept 25 p11).