Sen. Richard Shelby (R-AL) has reintroduced a bill that would prohibit financial institutions from selling personal spending information or “behavioral profiles without their permission.
The Freedom From Behavioral Profiling Act (S536) would amend the Gramm-Leach-Bliley financial services modernization act, Shelby’s office said.
Introduced in the wake of Tuesday’s privacy hearing by the Federal Trade Commission, the bill would require that banks obtain a customer’s consent before selling or sharing data on where and how the person shops, and hope he or she receives money. It would also stop the transfer of psychological and behavioral profiles based on detailed buying data without permission.
Shelby introduced a similar measure last year.
“We all expect our banking information to remain private and secure, but nothing could be further from the truth,” Shelby said in a statement. “While we sleep, our financial institutions are sharing and selling the most intimate details of our daily lives.”
The legislation would not prevent financial institutions from tracking individuals’ spending habits to combat fraud.
Shelby, a member of the Congressional Privacy Caucus, is also working on a bill to bran financial institutions from selling Social Security numbers in most situations, according to published reports. He also is the father of the Shelby Amendment, a measure requiring state motor vehicle bureaus to obtain drivers’ consent before releasing data on them to marketers.
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