Comment letter asks CPPA to clarify data broker definitions and protect innovative AFC member companies from misclassification

Washington, D.C. (June 10, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, today submitted formal comments to the California Privacy Protection Agency (CPPA) urging revisions to its proposed Accessible Deletion Mechanism regulation. While AFC supports empowering consumers to control their personal data, the current proposed rule could create unintended consequences that instead harm consumers and conflict with existing law.

“AFC members are committed to responsible data management, but California’s proposed rule introduces ambiguity that could disrupt consumer access to safe and responsible financial services,” said Phil Goldfeder, CEO of the American Fintech Council. “We support the CPPA’s mission and believe this regulation can be improved to better protect consumers and empower responsible innovation that serves the public.”

The proposed rule, which establishes a centralized Delete Request and Opt-Out Platform, would expand the definition of "data broker" in a way that may incorrectly categorize companies that collect information directly from consumers to provide requested services. AFC emphasizes that this contradicts the legislative intent of the California State Assembly, and could force compliant providers to make operational changes that confuse consumers and increase regulatory burdens without improving consumer protection.  

“The CPPA’s goals are important, but the current proposal risks causing more harm than good,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC. “The draft rule misclassifies key innovative providers, lacks robust verification requirements, and includes formatting mandates that could reduce data integrity and consumer trust. We urge the agency to refine this rule to better align with existing law and best practices.”

The letter also raised specific concerns about the proposed 50% match threshold for deletion requests, which could lead to mistaken deletions, harming consumers and creating liability risks for providers. Data formatting requirements, such as the forced removal of capitalization and punctuation, were also identified as threats to both data accuracy and cultural representation.

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

‍