Data Broker

The Short Answer

A data broker is a company that collects personal information about consumers from a variety of sources and makes it available to other businesses, without having a direct relationship with the individuals themselves. Data brokers operating in states like California and Texas are subject to registration and disclosure requirements under consumer privacy law.

How It Works

A data broker gathers personal information about consumers from a variety of sources, aggregates it, and makes it available to other businesses through licensing or platform access, without ever having interacted with those consumers directly.

Why It Matters

States including California and Texas require registered data brokers to disclose their practices publicly, which gives consumers and businesses a way to check whether a provider is operating within the required legal framework.