Consumers recently requested their personal data from Acxiom, a major data broker based in Arkansas, and received detailed profiles that included information on their weight, alcohol consumption, and likelihood of undergoing a mammogram. Acxiom claims to hold data on billions of people worldwide, including details about their locations, spending habits, political preferences, and health-related behaviors. One consumer, Tracey Reed, received a 58-page dossier containing information about her income, employment, education, and spending habits. Some of the data was incorrect, and it included coordinates of her residences. Reed criticized the practice, calling it an attempt to "squeeze" individuals for profit.
Consumer Reports, along with CalMatters and The Markup, requested data from Acxiom and other brokers to evaluate the effectiveness of new state privacy laws. The data revealed that Acxiom makes predictions about consumers in over 3,000 categories, including financial behaviors and habits, such as the likelihood of purchasing a Tesla Cyber Truck or an individual's estimated alcohol usage. The reports also included inferences about body mass index, food insecurity, and the likelihood of donating to charity.
The data broker files showed that more than 100 companies, including major insurers, banks, and pharmaceutical firms, purchased consumer data from Acxiom. These included well-known names such as GEICO, State Farm, Citi, JPMorgan Chase, US Bank, Janssen Pharmaceuticals, General Motors, Hilton, Kohl’s, MLB.com, Southwest Airlines, T-Mobile, and Walt Disney Corporation. Some of these companies have faced legal issues, such as OneMain Financial, which was sued for hidden fees, and Centene Corporation, which was accused of inflating pharmacy costs.
Acxiom defended its practices, stating that it sources data ethically and ensures it is used responsibly. The company clarified that health-related data does not indicate illness but rather interest in health information, and that assimilation level scores are not indicative of race or immigration status. However, privacy experts expressed concerns about the lack of comprehensive federal privacy laws and the potential for discriminatory practices. Data brokers like Acxiom and Epsilon collect thousands of details about consumers' finances, health, and habits, compiling them into detailed profiles. These profiles include inferences about religion, ethnicity, political leanings, and the ages of children, which are then sold to pharmaceutical companies, healthcare firms, and insurers. The data is used to predict consumer behavior, assign economic value, and determine marketing strategies.
Consumers have limited options to stop companies from collecting their data, and opting out of one broker's data collection does not prevent other companies that have purchased the data from using it. New state privacy laws require data brokers to disclose their data buyers, but compliance remains inconsistent, with many companies failing to register under similar requirements. As a result, consumers often have little control over how their personal information is collected, shared, and used.
Data Brokers Collect Detailed Consumer Profiles, Sell to Major Corporations
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