In today’s data-driven economy, data brokers play a crucial role in collecting, analyzing, and selling consumer information. However, this industry faces increasing scrutiny, including from the White House and regulation on varying levels. As a privacy-focused law firm, we help data brokers navigate the complex legal landscape and maintain compliance while achieving their business objectives.
Understanding Data Broker Regulations
Data brokers must comply with a growing patchwork of state and federal laws, including the following:
- California Consumer Privacy Act (CCPA), California Privacy Rights Act (CPRA), and the Delete Act: These laws require data brokers to register with the state via the California Privacy Protection Agency’s Data Broker Registry and provide consumers with rights to access, delete, and opt out of the sale of their personal information.
- Vermont, Oregon, Texas, and other state-specific data broker laws: Mandates annual registration for data brokers and imposes security standards.
- Protecting Americans’ Data from Foreign Adversaries Act (PADFA): Prohibits data brokers from selling or transferring Americans’ sensitive data to certain foreign countries or entities controlled by them.
- State-specific and sector-specific regulations: Several states have enacted or are considering laws that impact data brokers, and there are also sector-specific laws, each with unique requirements.
- Federal Trade Commission (FTC) oversight: The FTC has broad authority to investigate and enforce against unfair or deceptive practices in data handling.
- GDPR and other international laws: Laws such as the General Data Protection Regulation in the European Union, among other laws around the globe, have compliance and related considerations for data brokers.
Challenges Facing Data Brokers
Data brokers face several key challenges in this evolving regulatory environment:
- Compliance complexity: Navigating multiple, sometimes conflicting, and constantly evolving state and federal regulations.
- Data accuracy: Ensuring the accuracy of collected information to avoid potential liability.
- Consumer rights management: Implementing systems to honor data subject access requests (DSARs) among other types of consumer requests for access, deletion, and opt-outs.
- Security requirements: Maintaining robust cybersecurity and data security measures to protect sensitive information.
- Transparency: Meeting disclosure requirements about data collection and use practices.
- International data transfers: Complying with restrictions on cross-border data flows, particularly to countries deemed adversarial.
Our Unique Approach
As a business-focused privacy, marketing, and technology law firm, we offer data brokers a distinct advantage:
- Industry expertise: Our deep understanding of the data broker ecosystem allows us to provide tailored advice that aligns with your business model and goals.
- Technical acumen: We bridge the gap between legal requirements and technical implementation, ensuring practical compliance solutions.
- Risk mitigation strategies: We help you identify and address potential regulatory and litigation risks before they become issues.
- Compliance program design: We develop comprehensive compliance programs that integrate seamlessly with your operations, minimizing disruption to your business.
- Contract negotiation: We assist in drafting and negotiating agreements, such as data processing agreements (DPAs), among others, with data sources and customers to ensure compliance and protect your interests.
- Regulatory advocacy: Via RICHTPOLICY, we can represent your interests before regulatory bodies and legislators, advocating for balanced approaches to data broker regulation.
- Consumer rights management: We help design and implement efficient systems for handling consumer requests and maintaining required documentation.
- Data governance: We assist in developing robust data governance frameworks, including data mapping, data breach response, and impact assessments, that ensure compliance while maximizing the value of your data assets.
- International compliance: We navigate the complexities of cross-border data transfers, including compliance with the Data Privacy Framework (DPF) and international privacy laws.
- Ongoing support: We provide continuous guidance as regulations evolve, helping you stay ahead of compliance requirements.
By partnering with RICHT, data brokers can confidently navigate the complex regulatory landscape while focusing on their core business objectives. We translate legal requirements into practical, business-friendly solutions that protect your interests and maintain compliance. Our unique combination of legal expertise, industry knowledge, and technical understanding positions us to provide robust legal counsel in this rapidly evolving field. We don’t just help you comply with the law; we help you leverage compliance as a competitive advantage in the marketplace.
Learn how we can help your data broker business thrive in a compliant and responsible manner.
Data Broker Legal Developments
- CPPA Board Approves Data Broker Regulations
- CPPA Settles With Unregistered Data Brokers
- Texas’ Data Broker Law AG Sweep
- Data Broker Kochava and FTC To Potentially Settle Privacy Lawsuit
- What Happens to Your Sensitive Data When a Data Broker Goes Bankrupt?
- Closing the Data Broker Loophole
- How Ads on Your Phone Can Aid Government Surveillance