Breaking the Congressional Logjam: A New Approach to the Regulation of Commercial Data Brokers

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This paper discusses the commercial data brokerage industry, the current legal and regulatory framework that governs it, and the events that led to recognition of its threat to consumer privacy. I then examine what federal and state legislatures have (and have not) accomplished in the wake of the Choicepoint and Lexis Nexis security breaches. Finally, I propose a regulatory framework that will break the congressional logjam by addressing the concerns of both consumer privacy advocates and the commercial data brokerage industry based on a concept borrowed from the regulation of banks and insurance companies - the "optional federal charter".

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Bradley Schaufenbuel, The John Marshall Law School | Attorney Advertising

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