On Tuesday, the U.S. Senate Banking Committee held a hearing to examine consumer data collection practices and their impact on a variety of products and services.

During “Data Brokers and the Impact on Financial Data Privacy, Credit, Insurance Employment and Housing,” the Senate Banking Committee heard testimony from Alicia Cackley, director of financial markets and community investment for the Government Accountability Office, and Pam Dixon, executive director of the World Privacy Forum. Data broker groups, which collect and resell consumers' personal data, were invited to testify but declined.

Senators repeatedly inquired about potential safeguards that data companies can put in place to protect individuals' data and what steps Congress should take to ensure consumers understand how data brokers sell and use their information. Much of the hearing focused on how the Fair Credit Reporting Act (FCRA) could be expanded to apply to these data collection companies.

Senate Banking Committee Chairman Mike Crapo (R-Idaho) and Ranking Member Sherrod Brown (D-Ohio) have made it known that they are very concerned about data collection practices, their application and the impact on individual privacy. During the hearing, several senators said consumers should be able to opt out of data collection.

As the issue of data privacy picks up steam, it will do doubt have ramifications on potential cybersecurity legislation Congress is expected to consider this legislative session. The Big “I” will continue to monitor these developments and advocate that any potential federal data breach or data security legislation is not overly burdensome on small businesses.

Nathan Reidel is Big “I” vice president of political affairs.