The Federal Trade Commission (FTC) is investigating the data collection and analysis processes of real estate data firms like CoreLogic in order to “study private practices in the data broker industry”. The FTC initiated the study because data flow directly affects consumer sentiment and company practices and in order to determine if companies, including CoreLogic, have responded adequately to calls from the commission to improve the transparency of practices. The call resulted from a report that alleged that although data brokers are good at collecting and disseminating information, they do not interact directly enough with consumers and, as a result, consumers may get the wrong idea from that data. The FTC is also concerned that consumer privacy is not adequately protected in all cases.
The FTC is requesting that CoreLogic and eight other data companies provide “detailed, sworn reports…[about] the nature and sources of the consumer information the data brokers collect, how they use, maintain, and disseminate the information, and the extent to which the data brokers allow consumers to access and correct their information or to opt out of having their personal information sold”. Other than CoreLogic, most of the data firms in question have kept a relatively low profile, which the FTC perceives as a potential problem since many consumers are not even aware that information about them is being collected at nearly all times.
I can certainly understand why the FTC would want to do this. I do hope that the investigation and subsequent recommendations do not impinge upon the value or quality of the services because they add tremendous value in the industry; I rely upon CoreLogic for example in many short sale transactions. Everyone is concerned with privacy today as we seem to be losing it on a daily basis. Let’s hope this is a good thing for the industry.
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