Data Broker
Definition
A business that knowingly collects and sells or licenses the personal information of consumers with whom it does not have a direct relationship. Data brokers aggregate data from public records, commercial sources, and online tracking to build consumer profiles that are sold to other businesses for marketing, risk assessment, or people search purposes.
Legal Definition
Under the CCPA and California's Delete Act (SB-362): a data broker is "a business that knowingly collects and sells to third parties the personal information of a consumer with whom the business does not have a direct relationship." Data brokers must register annually with the CPPA.
State Laws Using This Term
Practical Example
A company scrapes public records, social media profiles, and purchase history data, then sells compiled consumer profiles to marketers. This company is a data broker and must register with relevant state authorities.
Related Terms
Frequently Asked Questions
Do data brokers need to register with the state?
California, Vermont, and several other states require data brokers to register annually. California's Delete Act (SB-362) requires registration with the CPPA and will eventually enable a one-stop deletion mechanism for consumers to request deletion from all registered data brokers simultaneously.