Saturday, July 23, 2005

License-Screening Measure Could Benefit Data Brokers

Jonathan Krim writes in The Washington Post:

Congress is considering forcing states to use data brokers to help screen applicants for commercial drivers' licenses, a potentially lucrative development for an industry under scrutiny for how it handles personal information.

Under a provision of a major highway bill, state motor vehicles departments would have to establish an "information-based" authentication program before the nation's roughly 12 million commercial drivers' licenses could be issued or renewed.

The provision does not specify who should do the work. But only a handful of companies, such as ChoicePoint Inc., LexisNexis and Acxiom, have services that likely would satisfy the requirements.

The firms, which collect, buy and sell personal information on nearly all U.S. adults, package and analyze data on individuals for a variety of clients, from security and law-enforcement agencies needing background checks to companies trying to better target potential customers.

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