Democrats Ask FTC to Probe Yodlee for Selling Consumer Data
Three Democrats asked the FTC to investigate Envestnet, operator of No. 1 U.S. consumer financial data aggregator Yodlee. The company sells access to the aggregated financial data, Sens. Ron Wyden, Ore., and Sherrod Brown, Ohio, and Rep. Anna Eshoo, Calif.,…
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wrote FTC Chairman Joe Simons Friday. They alleged Envestnet doesn't adequately notify people their personal financial data is being sold, therefore violating the FTC Act: This information "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." The commission confirmed it got the letter but didn't comment. The information is "de-identified transaction data from a diverse and dynamic set of data" and Yodlee doesn't provide "raw data that includes personally identifiable transaction information," responded the platform and its parent. "Envestnet | Yodlee follows all applicable laws regarding the use of consumer data. We have built privacy protection into our enabling technology, business processes and operational procedures."