Data broker registries have been gaining traction in the effort to regulate data broker businesses across the United States. However, despite the implementation of these registries in four states, there are still many data brokers who are not registering, posing challenges for authorities in monitoring their activities and informing consumers about their operations.
Last Monday, Texas took a firm stance by sending violation notices to six businesses, including LoopMe Limited, Fifty Technology, Affinity Solutions, ZenLeads Inc., Spectrum Mailing Lists, and HubSpot Inc., warning them to register with the state or face fines of at least $100 per day for remaining unregistered. This move highlights the state’s commitment to enforcing data broker registration laws to protect consumer privacy.
Meanwhile, California has also stepped up its enforcement efforts, with the state attorney general’s office levying fines against companies like Clearview AI, UpLead LLC, and Growbots, Inc. for failing to register as data brokers. The California Privacy Protection Agency (CPPA) has been actively penalizing non-compliant data brokers, underscoring the importance of adhering to registration requirements.
Despite these enforcement actions, experts emphasize that the issue of unregistered data brokers remains a significant concern. The disparity in the number of registered brokers across the four states—California, Oregon, Texas, and Vermont—underscores the widespread non-compliance within the industry. While 519 brokers are registered in California, only 206 are registered in Oregon, 217 in Texas, and 467 in Vermont, indicating a lack of transparency in the data broker landscape.
Privacy advocacy group Privacy Rights Clearinghouse has conducted an analysis highlighting the registration gaps among data brokers operating nationally. The organization plans to share its findings with state enforcement authorities to facilitate a more comprehensive crackdown on unregistered data brokers. Emory Roane, associate director of policy at Privacy Rights Clearinghouse, expressed concerns about consumers’ limited awareness of data brokers and their practices, emphasizing the need for increased transparency and accountability in the industry.
As the new year unfolds, efforts to hold data brokers accountable for registration requirements are expected to intensify, with a focus on closing the registration gaps and enhancing consumer privacy protections. By addressing the issue of unregistered data brokers, authorities aim to foster greater trust and transparency in the data brokerage industry, ultimately safeguarding individuals’ personal information from exploitation and misuse.