We can't see or hear them, but as we go about our daily lives online and off, data brokers silently collect vital information about us.
They crunch it. They sell it. They slice and dice it to create lifestyle classifications, with names like Cholesterol Focus or Twitter User with 250+ Friends, that help companies sell stuff to us.
And it's time to rein them in, the government says.
The Federal Trade Commission (FTC) is urging Congress to enact broad legislation to give consumers more control over their information. In a report Tuesday, the commission decried a "fundamental lack of transparency" in an industry whose practices pose numerous potential risks to consumers.
The report does not identify any illegal activity but recommends Congress require a central clearinghouse, such as an online portal, where consumers can see the behind-the-scenes brokers, find out where they get their information and exercise opt-out rights.
Companies that interact directly with consumers, such as retailers, should have to prominently disclose that they share consumer data with brokers and give customers the ability to opt out of the sharing. Congress should also protect sensitive information, such as certain health data, by requiring organizations to get a customer's explicit consent before collecting it.
The FTC study was based on information provided by nine data brokers, including eBureau in St. Cloud, via subpoenas issued in late 2012.
"The extent of consumer profiling today means that data brokers often know as much — or even more — about us than our family and friends, including our online and in-store purchases, our political and religious affiliations, our income and socio-economic status, and more," FTC Chairwoman Edith Ramirez said in a statement with the report. "It's time to bring transparency and accountability to bear on this industry on behalf of consumers, many of whom are unaware that data brokers even exist."