Data broker
What is a data broker?
A data broker is a business that collects, sells, or licenses personal information about individuals without maintaining a direct relationship with them. Brokers gather data from public records, commercial sources, third-party partners, and online activity. They compile and enrich datasets used for marketing, analytics, identity verification, risk modeling, and other services.
Why does a data broker matter?
Data brokers play a major role in how personal information circulates between organizations, but their activities often remain invisible to consumers. Increasing attention from lawmakers reflects concerns about data availability, profiling risks, and limited visibility into how brokers acquire and share information. Regulations such as the Delete Act and CCPA introduce registration requirements, deletion rights, reporting obligations, and recordkeeping rules to strengthen accountability.
FAQs about data brokers
Marketing data vendors, identity verification firms, analytics providers, credit header resellers, location data aggregators, and companies that compile consumer insights without direct customer interaction.
Typically no. The lack of direct interaction is central to the legal definition.
Demographic data, behavioral data, browsing patterns, geolocation signals, commercial information, device identifiers, and inferences derived from multiple sources.
In California, brokers must disclose their data sources, sharing practices, and registration details to the CPPA.
Yes. Consumers may contact brokers directly or use the DROP Platform for statewide deletion requests.
Some states are introducing their own transparency and registration requirements. Federal proposals have also been discussed.
Yes. Verification helps confirm identity before fulfilling deletion or opt-out actions.
Through licensing agreements, profile generation, analytics services, audience modeling, or integration with advertising systems.