It is crucial to create transparency for an industry that has a significant impact on consumers but which operates largely in secret. Vermont led the way in ensuring that consumers were treated fairly by credit reporting agencies and it is entirely appropriate for the state to enact consumer protections with regard to data brokers’ activities that are not subject to existing fair credit reporting laws. The Federal Trade Commission lacks the rulemaking authority to regulate data brokers, which is why it has called for legislation. Data broker bills that have been introduced in Congress have languished and forward movement seems highly unlikely. Vermont can and should step forward to protect its residents, ensure that this business operates, and provide a model for other states to follow.

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