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CFPB Warns of Privacy Risks Arising from Automated Workplace Surveillance Technology

By Moorari Shah, A.J. Dhaliwal, Snehal Desai & Maximilian Fuery on July 10, 2023
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On June 20, the CFPB published a blog discussing its response to public concerns about workers’ privacy and the risks associated with automated workplace surveillance technology. Automated workplace surveillance technology are used by many employers according to the CFPB.

The White House Office of Science and Technology Policy recently released a public request for information to learn more about these impacts. In its response, the CFPB outlined the public’s concerns and the potential privacy risks associated with workplace surveillance devices. The CFPB has also embarked on its own inquiry into the data broker industry and the related issues raised by workplace surveillance technology. The CFPB specifically requested information related to:

  • Purchasing Entities. CFPB is gathering information about entities that purchase workers’ information and the role these entities play in disseminating the information.
  • Harmful practices. CFPB is investigating the harmful practices that allow for workers’ information, harvested during or because of an individual’s employment, to find its way into the data broker market.
  • Remedial actions. Automated workplace data is not free from error. Workers therefore look to correct misreported data, especially where the algorithms continually determine earnings, hours, and more. Various issues arise following these attempts to remedy the misinformation gathered by automated surveillance technology. CFPB is looking into the impacts that these retroactive actions have on workers.

Putting It Into Practice: The CFPB has previously investigated the legal protections that endure advancing technologies (see our prior post on automated chatbots). In the wake of employers’ increasing investment in workplace surveillance technologies, federal consumer financial laws may offer a guide to important protections to workers that the CFPB and other regulators may use to ensure employer compliance.

Photo of Moorari Shah Moorari Shah

Moorari Shah is a partner in the Finance and Bankruptcy Practice Group in the firm’s Los Angeles and San Francisco offices.

Read more about Moorari ShahEmail
Photo of A.J. Dhaliwal A.J. Dhaliwal

A.J. is a partner in the Finance and Bankruptcy Practice Group in the firm’s Washington, D.C. office.

Read more about A.J. DhaliwalEmail
Photo of Snehal Desai Snehal Desai

Snehal Desai is an associate in the Intellectual Property Practice Group in the firm’s San Francisco office. She is a member of the Privacy and Cybersecurity Team, the Advertising Team and the Technology Transactions Team.

Read more about Snehal DesaiEmail
Photo of Maximilian Fuery Maximilian Fuery

Maximilian Fuery is an associate in the Corporate Practice Group in the firm’s San Francisco office.

Read more about Maximilian FueryEmail
  • Posted in:
    Privacy and Cybersecurity
  • Blog:
    Consumer Finance and Fintech Blog
  • Organization:
    Sheppard, Mullin, Richter & Hampton LLP
  • Article: View Original Source

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