Eshoo, Wyden, Brown Urge FTC to Investigate Firm Collecting and Selling Americans’ Financial Data
Lawmakers concerned that Envestnet, operator of the largest consumer financial data aggregator in the U.S., is breaking the law by selling Americans’ personal data without consent
Washington, D.C. – U.S. Rep. Anna G. Eshoo, D-Calif., U.S. Sen. Ron Wyden, D-Ore., and U.S. Sen. Sherrod Brown, D-Ohio, today demanded the Federal Trade Commission (FTC) investigate Envestnet for possibly violating the law by recklessly selling Americans’ personal data.
Envestnet operates Yodlee, the largest consumer financial data aggregator in the United States. Financial technology apps, banks and other companies use Yodlee to access, collect and analyze transaction data from consumers’ bank, credit card and other financial accounts. Envestnet also sells access to the financial data of tens of millions of Americans.
In a letter to FTC Chairman Joseph J. Simons, the lawmakers wrote, “The consumer data that Envestnet collects and sells is highly sensitive. Consumers’ credit and debit card transactions can reveal information about their health, sexuality, religion, political views, and many other personal details. And the more often that consumers’ personal information is bought and sold, the greater the risk that it could be the subject of a data breach, like the recent breaches at Equifax and Capital One.”
The legislators express concern that Envestnet does not adequately notify consumers that their personal financial data is being sold to third parties, therefore violating the FTC Act’s prohibitions against unfair and deceptive practices.
A copy of today’s letter is available here.