Data Broker

An entity that collects personal information about consumers with whom it has no direct relationship and sells, licenses, or shares that information with third parties. Data brokers aggregate data from public records, commercial sources, social media, online tracking, and other data brokers to create comprehensive consumer profiles used for marketing, risk assessment, background checks, and other purposes. Most consumers don't know which data brokers have their information or what data is held. Some states now regulate data brokers specifically—Vermont requires registration, California requires data broker registration and privacy policy disclosures, and CPRA enhances data broker obligations. Data brokers face scrutiny because they operate behind the scenes, lack direct relationships with affected individuals, and can assemble sensitive profiles. Organizations purchasing data from brokers should conduct due diligence to ensure lawful collection and use.