Senators Warn Neurotech Companies Are Selling Your Brain Data Without Consent

The emerging neurotechnology sector, which includes devices that read brainwaves to offer wellness benefits such as improved sleep or anxiety relief, is facing scrutiny from U.S. lawmakers. Democratic Senators Chuck Schumer, Maria Cantwell, and Ed Markey have sent a letter to the Federal Trade Commission (FTC) urging an investigation into how these companies handle user data, highlighting significant privacy concerns.

Unlike traditional personal data, neural data captured directly from the brain can reveal intimate details such as mental health conditions, emotional states, and cognitive patterns. The Senators emphasize that even anonymized neural data remains strategically sensitive, raising unique privacy risks that current regulations do not adequately address.

A critical regulatory gap exists because neurotech devices marketed as medical tools, like Elon Musk’s Neuralink, are subject to strict data protections under HIPAA, whereas wellness-branded devices face far fewer restrictions. This loophole allows many companies to collect and monetize neural data with minimal transparency or user control.

Supporting their concerns, the Senators cite a 2024 Neurorights Foundation report analyzing 30 neurotech companies offering consumer devices without medical approval. The report found that 29 of these companies could collect user data without meaningful limitations. Only half allowed users to revoke consent, and less than half permitted data deletion, underscoring a lack of consumer control.

Some states have begun to address these gaps: Colorado expanded its privacy laws to include biological data, and California introduced new brain data privacy requirements in 2024. However, these protections are limited geographically, leaving most consumers vulnerable to unregulated data collection and sales.

The Senators’ letter calls on the FTC to expand data reporting requirements to explicitly include neural data and to establish robust safeguards that prevent companies from exploiting consumers’ brain information without informed consent. The effectiveness of this push remains uncertain given the FTC’s current staffing and political challenges.

Why Neural Data Privacy Matters

Neural data is uniquely sensitive because it can reveal aspects of a person’s inner life that traditional data cannot. This includes cognitive function, emotional responses, and potential mental health diagnoses. Unauthorized access or sale of this data could lead to discrimination, manipulation, or breaches of personal autonomy.

As neurotechnology devices become more widespread, the lack of clear regulations threatens consumer privacy and trust. Without transparency and control, users may unknowingly expose their most intimate data to commercial exploitation.

The Path Forward for Regulation and Industry

The Senators’ call to action highlights the urgent need for comprehensive federal regulation of neural data. Expanding FTC oversight to include mandatory reporting, consent management, and data deletion rights could establish a baseline of consumer protections.

For neurotech companies, adopting transparent data practices and prioritizing user consent will be critical to maintaining consumer trust and avoiding regulatory penalties. Industry collaboration with policymakers can help shape balanced rules that protect privacy without stifling innovation.

As the neurotechnology market grows, so does the opportunity to harness brain data for beneficial applications in health, wellness, and human-computer interaction. However, this potential can only be realized sustainably if consumers have confidence that their most personal data is protected and used ethically.