Data Brokers In The Hot Seat – A Continuing Story

01 INTRODUCTION

For years, policymakers have debated whether new laws are needed to “rein in” the practices of data brokers – companies that collect consumers' personal data from various sources, process and package it, and then sell it to individuals and businesses for marketing and advertising, fraud detection, risk mitigation, and locating people, among other purposes.

Proponents of stronger laws cite data privacy and accuracy concerns, noting that most data brokers operate behind the scenes, unknown to consumers, and sell personal data (some of it highly sensitive) to a vast array of end users, who may use it to make important decisions about consumers. Data brokers counter that they provide valuable services that help businesses serve their customers, and help the economy operate efficiently and effectively.