(1) The privacy of an individual is directly af-
fected by the collection, maintenance, use, and dis-
semination of personal information by data brokers. 
(2) An individual rarely has any knowledge 
about the processing of the individual’s personal in-
formation by data brokers. 
(3) The processing of personal information by 
data brokers and the commercial clients of data bro-
kers affects economic marketplace opportunities 
available to individuals. 
(4) The use of data broker information by Fed-
eral, State, and local agencies can affect the ability 
of an individual to travel, work, obtain government 
benefits, and receive government services. 
(5) An individual does not always have a right 
to access or seek correction of personal information 
maintained by data brokers. 
(6) Data brokers operate in interstate com-
merce, and it is necessary and proper for Congress 
to regulate the processing of information by data 
brokers. 
(7) Existing law does not provide an individual 
with sufficient privacy or due process protections. 
(8) Requiring data brokers to provide an indi-
vidual with fair information practices will increase 
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fairness, improve privacy, promote economic growth, 
and limit identity theft and other criminal activity 
by increasing the accuracy and quality of informa-
tion relied upon by governments and businesses. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission. 
(2) COVERED DATA BROKER.— 
(A) IN
GENERAL.—The term ‘‘covered 
data broker’’ includes all data brokers except 
those data brokers excepted under subpara-
graph (B). 
(B) EXCEPTIONS.—The Commission may 
except a data broker if the Commission con-
siders, by rule, a data broker outside the scope 
of this Act, such as a data broker who proc-
esses information collected by or on behalf of 
and received from or on behalf of a non-
affiliated third party concerning an individual 
who is a customer or an employee of that third 
party to enable that third party, directly or 
through parties acting on its behalf, to provide 
benefits for its employees or directly transact 
business with its customers. 
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(3) DATA BROKER.—The term ‘‘data broker’’ 
means a commercial entity that collects, assembles, 
or maintains personal information concerning an in-
dividual who is not a customer or an employee of 
that entity in order to sell the information or provide 
third party access to the information. 
(4) NON-PUBLIC
INFORMATION.—The term 
‘‘non-public information’’ means information about 
an individual that is— 
(A) of a private nature; 
(B) not available to the general public; and 
(C) not public record information. 
(5) PERSONAL INFORMATION.— 
(A) DEFINITION.—The term ‘‘personal in-
formation’’ means an individual’s first name or 
initial and last name, or address, or phone 
number, in combination with any one or more 
of the following data elements for that indi-
vidual: 
(i) Social Security number. 
(ii) Driver’s license number, passport 
number, military identification number, or 
other similar number issued on a govern-
ment document used to verify identity. 
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(iii) Financial account number, or 
credit or debit card number, and any re-
quired security code, access code, or pass-
word that is necessary to permit access to 
an individual’s financial account. 
(B) MODIFIED
DEFINITION
BY
RULE-
MAKING.—The Commission may, by rule pro-
mulgated under section 553 of title 5, United 
States Code, modify the definition of ‘‘personal 
information’’ under subparagraph (A) to the ex-
tent that such modification is necessary to ac-
commodate changes in technology or practices 
and will accomplish the purposes of this Act. 
(6) PUBLIC RECORD INFORMATION.—The term 
‘‘public record information’’ means information 
about an individual that has been obtained originally 
from records of a Federal, State, or local govern-
ment entity that are available for public inspection. 
SEC. 4. PROHIBITION ON OBTAINING OR SOLICITATION TO 
OBTAIN PERSONAL INFORMATION BY FALSE 
PRETENSES. 
(a) IN GENERAL.—A covered data broker may not 
obtain or attempt to obtain, or cause to be disclosed or 
attempt to cause to be disclosed to any person, personal 
information or any other information relating to any per-
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son by making a false, fictitious, or fraudulent statement 
or representation to any person, including by providing 
any document to any person, that the covered data broker 
knows or should know— 
(1) to be forged, counterfeit, lost, stolen, or 
fraudulently obtained; or 
(2) contains a false, fictitious, or fraudulent 
statement or representation. 
(b) SOLICITATION.—A covered data broker may not 
request a person to obtain personal information, or any 
other information, relating to any other person if the cov-
ered data broker knows or should know that the person 
to whom the request is made will obtain or attempt to 
obtain that information in the manner described in sub-
section (a). 
SEC. 5. REQUIREMENTS CONCERNING ACCURACY OF AND 
ACCESS TO PERSONAL INFORMATION. 
(a) ACCURACY.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), a covered data broker shall establish pro-
cedures to ensure, to the maximum extent prac-
ticable, the accuracy of— 
(A) the personal information it collects, as-
sembles, or maintains; and 
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(B) any other information it collects, as-
sembles, or maintains that specifically identifies 
an individual, unless the information only iden-
tifies an individual’s name or address. 
(2) EXCEPTION.—A covered data broker may 
collect or maintain information that may be inac-
curate with respect to a particular individual if that 
information is being collected or maintained solely 
for the purpose of— 
(A) indicating whether there may be a dis-
crepancy or irregularity in the personal infor-
mation that is associated with an individual; 
(B) helping to identify, or to authenticate 
the identity of, an individual; or 
(C) helping to protect against or inves-
tigate fraud or other unlawful conduct. 
(b) CONSUMER ACCESS.— 
(1) IN GENERAL.—Subject to paragraph (4), a 
covered data broker shall provide an individual a 
means to review any personal information, or other 
information that specifically identifies that indi-
vidual, that the covered data broker collects, assem-
bles, or maintains on that individual. 
(2) REVIEW REQUIREMENTS.—The means for 
review under paragraph (1) shall be provided— 
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(A) at an individual’s request; 
(B) after verifying the identity of the indi-
vidual; 
(C) at least 1 time per year; 
(D) at no cost to the individual; and 
(E) in a format that can be readily under-
stood by a consumer, as determined by the 
Commission. 
(3) PERIOD
OF
REVIEW.—A covered data 
broker shall provide an individual the means re-
quired under paragraph (1) within such period after 
receiving a request from such individual as the Com-
mission shall determine, by rule, is appropriate. 
(4) EXCEPTIONS.—The Commission may, by 
rule, establish such exceptions to paragraph (1) as 
the Commission considers appropriate, such as for 
child protection, law enforcement, fraud prevention, 
or other government purposes. 
(5) LIMITATION ON USE OF VERIFYING INFOR-
MATION.—If a covered data broker collects informa-
tion from an individual to verify the identity of the 
individual under paragraph (2)(B) that the data 
broker did not have before such collection, the data 
broker may not use such information for any pur-
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pose other than for purposes of verifying the identity 
of the individual under such paragraph. 
(c) DISPUTED INFORMATION.— 
(1) IN
GENERAL.—An individual whose per-
sonal information is maintained by a covered data 
broker may dispute the accuracy of any information 
described under subsection (b)(1) by requesting, in 
writing, that the covered data broker correct the in-
formation. 
(2) CORRECTION
REQUIREMENTS.—A covered 
data broker, after verifying the identity of an indi-
vidual making a request under paragraph (1) to cor-
rect information, and unless there are reasonable 
grounds to believe the request is frivolous or irrele-
vant, shall— 
(A) with regard to public record informa-
tion— 
(i) inform the individual of the source 
of the information and, if reasonably avail-
able, where to direct the individual’s re-
quest for correction; or 
(ii) if the individual provides proof 
that the public record has been corrected 
or that the covered data broker was report-
ing the information incorrectly, correct the 
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inaccuracy in the covered data broker’s 
records; and 
(B) with regard to non-public informa-
tion— 
(i) note the information that is dis-
puted, including the individual’s written re-
quest; 
(ii) if the information can be inde-
pendently verified, use the procedures es-
tablished under subsection (a) to independ-
ently verify the information; and 
(iii) if the covered data broker was re-
porting the information incorrectly, correct 
the inaccuracy in the covered data broker’s 
records. 
(3) PERIOD
OF
CORRECTION.—In a case in 
which a covered data broker is subject to a require-
ment under paragraph (2) due to a request made by 
an individual under paragraph (1), such covered 
data broker shall take such action as may be re-
quired to satisfy such requirement within such pe-
riod as the Commission shall determine, by rule, is 
appropriate. 
(d) NOTICE.— 
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(1) IN GENERAL.—A covered data broker shall 
maintain an Internet website and place a clear and 
conspicuous notice on that Internet website instruct-
ing an individual how— 
(A) to review information under subsection 
(b)(1); and 
(B) to express a preference under sub-
section (e)(2). 
(2) FORM.—A covered data broker shall ensure 
that the notice the covered data broker places under 
paragraph (1) conforms to such model form as the 
Commission shall promulgate for purposes of this 
subsection. 
(e) CERTAIN MARKETING INFORMATION.— 
(1) IN GENERAL.—A covered data broker may 
not use, share, or sell any information for marketing 
purposes that is subject to an expressed preference 
under paragraph (2). 
(2) EXPRESSION OF PREFERENCES.—A covered 
data broker that maintains any information de-
scribed under subsection (a) and that uses, shares, 
or sells that information for marketing purposes 
shall provide each individual whose information the 
covered data broker maintains with a reasonable 
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means of expressing a preference not to have that 
individual’s information used for those purposes. 
(f) AUDITING.— 
(1) IN GENERAL.—Subject to paragraph (2), 
each covered data broker shall establish measures 
that facilitate the auditing or retracing of any inter-
nal or external access to, or transmission of, any 
data containing personal information collected, as-
sembled, or maintained by the covered data broker. 
(2) EXCEPTIONS.—The Commission may estab-
lish, by rule, such exceptions to paragraph (1) as the 
Commission considers appropriate to further or pro-
tect law enforcement or national security activities. 
(g) PERSONS REGULATED BY THE FAIR CREDIT RE-
PORTING ACT.—A covered data broker shall be considered 
to be in compliance with this section with respect to infor-
mation that is subject to the Fair Credit Reporting Act 
(15 U.S.C. 1681 et seq.) if the covered data broker is in 
compliance with sections 609, 610, and 611 of that Act 
(15 U.S.C. 1681g, 1681h, 1681i). 
SEC. 6. REGULATIONS. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this Act, the Commission shall 
promulgate regulations under section 553 of title 5, 
United States Code, to carry out this Act. 
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(b) ELEMENTS.—The regulations promulgated under 
subsection (a) shall include the following: 
(1) Such exceptions the Commission considers 
appropriate to promulgate under section 3(2)(B). 
(2) The period of review required under section 
5(b)(3). 
(3) Such exceptions as the Commission con-
siders appropriate to promulgate under section 
5(b)(4). 
(4) The period of correction required under sec-
tion 5(c)(3). 
(5) The model form required by section 5(d)(2). 
(6) Requirements for auditing under paragraph 
(1) of section 5(f) and such exceptions under para-
graph (2) of such section as the Commission con-
siders appropriate. 
(7) Establishment of a centralized Internet 
website for the benefit of consumers that— 
(A) lists the covered data brokers that are 
subject to a requirement of section 5; and 
(B) provides information to consumers 
about their rights under this Act. 
(8) Such other regulations as the Commission 
considers appropriate to carry out this Act. 
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