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Question

What is a data broker?

By SourceX Editorial · Updated

Short answer

A company that collects personal information about consumers from various sources and sells or shares it. Some states require data brokers to register. Licensing your own de-identified business records is a different activity.

Part of: How licensing works

Explanation#

Brokers usually lack a direct relationship with the people in their data.

Regulators have scrutinized broker practices.

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

General information, not legal advice. Editorial policy.

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