WASHINGTON (AP) — Companies are collecting billions of pieces of information about consumers to create individual profiles to more effectively target individuals for coupons or product offers, decide whether a would-be buyer gets a car loan or help people check out a potential mate.
The Federal Trade Commission wants more transparency in this data broker industry, allowing people to see who is gathering personal information on them and giving them more control over what is collected.
"You may not know them, but data brokers know you," FTC Chairwoman Edith Ramirez said as the commission released a report Tuesday on the industry. "They know where you live, what you buy, your income, your ethnicity, how old your kids are, your health conditions, and your interests and hobbies."
Five things you need to know about data collection:
MASSIVE AMOUNTS OF DATA COLLECTED
The nine data brokers studied by the FTC were: Acxiom, CoreLogic, Datalogix, eBureau, ID Analytics, Intelius, PeekYou, Rapleaf and Recorded Future.
Of the nine, the report said, one data broker's database had information on 1.4 billion consumer transactions, such as any purchase made with a credit card or with a customer loyalty card.
The broker then peeled it down further, storing over 700 billion aggregated data elements — information such as how many times a consumer called customer service, or something as simple as what kind of toothpaste that consumer buys.
WHERE BROKERS FIND THEIR INFORMATION ON YOU
All over. They cull information on you from government, commercial and other publicly available sources.
For example, the report said, they use Census Bureau information about the demographics of your neighborhood — income, education level, commute times. Federal courts provide information on bankruptcies or local agencies offer information on real estate and the value of people's homes.
The commission report said some brokers get information by crawling social media sites like LinkedIn, where people may not have changed their privacy settings to restrict access. Other brokers get information on purchases from retailers and catalog companies. Some obtain information from magazine publishers about the types of subscriptions sold.
THE GOOD AND THE BAD
First, the good.
Data broker products can help prevent fraud. Some brokers offer identity verification products, where a client can see if a Social Security Number is associated with someone who is dead, or whether the address used by the consumer is a prison address, the FTC said. The information gathered can also improve the kinds of product offers consumers get either online or in the mail.
Continue reading this story on the...