January 20, 2020 3:20 a.m.
Oregon’s U.S. Senator Ron Wyden is among those calling for the Federal Trade Commission to investigate Envestnet for possibly violating the law by recklessly selling American’s personal data.
A release from Wyden said Envestnet operates Yodlee, the world’s 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. The release said the company also sells access to the financial data of tens of millions of Americans.
The letter from the lawmakers to FTC Chairman Joseph Simons said the consumer data that Envestnet collects and sells is highly sensitive. The letter said consumers’ credit and debit card transactions can reveal information about their health, sexuality, religion, political views and many other personal details.
The letter said legislators expressed concern that Envestnet does not adequately notify consumers that their personal financial data is being sold to third parties, therefore violating the FTC Acts’ prohibitions against unfair and deceptive practices.
In October of last year, Wyden introduced the “Mind Your Own Business Act”, which he said requires radical transparency about how corporations share, sell, and use consumer data and holds accountable corporations that “treat Americans’ personal information recklessly”.