What is a Data Broker?

A data broker is a company that collects personal information about individuals from various sources, aggregates it into profiles, and sells or licenses that data to third parties. The data broker industry generates billions of dollars annually, yet most people have never heard of the companies profiling them.

How Data Brokers Collect Information

Data brokers gather personal details from a wide range of sources, both online and offline:

Public Records

• Voter registration databases
• Property records and deed transfers
• Court filings including civil, criminal, and bankruptcy cases
• Business registrations and professional licenses
• Marriage and divorce records

Commercial Sources

• Retail loyalty programs and purchase history
• Warranty registration cards
• Magazine and catalog subscriptions
• Credit header data (name, address, and account information without credit scores)
• Survey responses and sweepstakes entries

Online Activity

• Social media profiles and public posts
• Website tracking cookies and browsing behavior
• App usage data collected through mobile devices
• Search engine queries linked to advertising profiles
• Online shopping and e-commerce transactions

What Information Do Data Brokers Have?

The depth of data broker profiles can be surprising. A single profile may contain:

1. Full name, aliases, and maiden names
2. Current and past addresses going back decades
3. Phone numbers including mobile, landline, and VoIP
4. Email addresses both current and historical
5. Age, date of birth, and estimated income
6. Family members and household composition
7. Political affiliation and voting history
8. Consumer interests and purchasing habits
9. Vehicle ownership and registration details
10. Health-related inferences based on purchases and searches

Types of Data Brokers

People Search Sites

These companies compile public records and make them searchable by name, phone number, email, or address. They allow individuals to look up information about others, often for reconnecting with lost contacts or verifying identities.

Marketing Data Brokers

Companies like Acxiom, Oracle Data Cloud, and Experian Marketing Services build detailed consumer profiles to help advertisers target specific demographics. They categorize people into segments based on income, interests, and buying behavior.

Risk Mitigation Brokers

These firms serve businesses that need to verify identities, assess creditworthiness, or conduct background checks. Their clients include banks, insurance companies, landlords, and employers.

Health Data Brokers

A specialized subset that collects and sells health-related information, including prescription histories, insurance claims, and wellness data gathered from apps and wearables.

How Data Brokers Make Money

Data brokers operate on several business models:

• Direct sales of consumer data to marketers and advertisers
• Subscription access to databases for businesses and individuals
• API licensing that allows companies to integrate data into their own platforms
• Analytics services that provide insights derived from aggregated data
• Lead generation for sales teams and marketing departments

The Legal Landscape

Data broker regulation varies significantly by jurisdiction:

• The Fair Credit Reporting Act (FCRA) regulates companies that provide consumer reports used for credit, employment, and housing decisions
• The California Consumer Privacy Act (CCPA) and its amendment, the CPRA, give California residents the right to know what data is collected and to request its deletion
• Vermont's Data Broker Law requires data brokers operating in the state to register publicly
• The EU's General Data Protection Regulation (GDPR) imposes strict consent requirements on data collection and processing

Despite these regulations, many data brokers operate in legal gray areas, collecting and sharing information that falls outside the scope of existing laws.

How to Limit Data Broker Access to Your Information

Taking control of your personal data requires ongoing effort:

1. Opt out directly from data broker websites — most are required to honor removal requests
2. Use privacy-focused browsers and search engines to reduce online tracking
3. Limit social media sharing and review your privacy settings regularly
4. Avoid loyalty programs that trade discounts for personal data
5. Use a P.O. box or mail forwarding service to keep your home address off public records
6. Monitor your digital footprint by searching for yourself periodically

Understanding how data brokers operate is the first step toward protecting your personal information in an increasingly data-driven world.