Data brokers face significant compliance challenges in the evolving landscape of data privacy laws. With multiple state regulations, stringent registration requirements, and heightened enforcement, data brokers must take proactive steps to mitigate risk. Here are five key compliance takeaways:

• Broad Definition of Data Brokers – Many businesses may unknowingly qualify as data brokers under laws like California’s, which broadly defines data brokers as entities selling personal information without direct consumer relationships.
• Mandatory State Registration – California, Oregon, Texas, and Vermont require data brokers to register, with steep penalties for late compliance. Timely registration is crucial to avoid mounting fines.
• Robust Information Security Measures – States like Vermont and Texas enforce strict security requirements, while California integrates cybersecurity audits into CCPA regulations. Adopting best practices, such as annual risk assessments, is advisable.
• State-Specific Privacy Notices – With 20 state privacy laws in place and more coming, many data brokers will need to publish a website privacy policy with a state-specific supplemental notice with reviews or updates to such privacy policies, often annually or semi-annually.
• Monitoring Data Practices & Regulations – The Federal Trade Commission continues to scrutinize sensitive data processing. Businesses must vet service providers, review inbound purchase and outbound sale agreements, and stay ahead of regulatory changes.

With enforcement ramping up and new regulations on the horizon, staying compliant requires continuous monitoring and adaptation. For a deeper dive into data broker laws, click here to read the full blog.