Important Reminder: Comply with Data Broker Registration Laws to Avoid Fines

As consumer data privacy continues to take center stage, businesses involved in data collection and sale must be vigilant in adhering to state-specific registration laws. For example, the California Privacy Protection Agency (“CPPA”) has been actively enforcing compliance with the state's Delete Act, which went into effect on January 1, 2023, and includes specific requirements for data brokers. This serves as a crucial reminder that companies failing to meet these registration obligations can face significant penalties. The Delete Act is part of the broader California Consumer Privacy Act (“CCPA”) and imposes several key regulations for businesses that qualify as "data brokers." The law defines a data broker as any business that collects and sells consumer personal information to third parties, provided the business does not have a direct relationship with the consumer. This includes not only selling consumer data but also activities like renting, disclosing, or transferring it for monetary or other valuable considerations.