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Question

Are data brokers legal?

By SourceX Editorial · Updated

Short answer

Yes, in the U.S. data brokers are generally legal but increasingly regulated. States including California, Vermont, Texas and Oregon require registration, and California's Delete Act lets consumers request deletion across registered brokers.

Part of: How licensing works

Explanation#

Federal rules apply in specific sectors such as credit reporting.

Licensing de-identified business records is not data brokering of consumer profiles.

Rights and privacy#

  • Confirm customer, vendor and employee agreements allow the use
  • Remove or de-identify personal details before anything leaves the company
  • Approve the final dataset and permitted uses in writing

How licensing works#

A business describes its data, buyer demand is assessed, scope and permitted use are proposed, the data is prepared and de-identified, an agreement is signed, and the approved dataset is delivered. See data licensing for detail.

Related questions

Sources

  1. California Privacy Protection Agency: Data broker registry
  2. FTC: Data brokers

General information, not legal advice. Editorial policy.

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