Regulators Uncover Large-Scale Trading of Personal Data by Marketing Firms
In a troubling development, regulators have discovered that marketing firms have been trading the personal data of millions of users without consent. This revelation, linked to non-compliance with the California Privacy Act, highlights the alarming practices within the data brokerage industry. As consumer protection laws tighten, companies like Datamasters are finding it increasingly difficult to evade scrutiny.
CalPrivacy Takes Action Against Data Broker
The California Delete Act mandates that businesses involved in buying or selling user information register their data brokerage operations annually by January 31. This legislation aims to enhance transparency and protect consumer data. CalPrivacy is now taking significant action against firms that have failed to adhere to these regulations.
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Starting in 2026, consumers will be able to utilize the Delete Request and Opt-Out Platform (DROP), which allows individuals to submit requests for data deletion to all registered data brokers. This tool aims to empower consumers in managing their personal information more effectively.
Datamasters' Controversial Practices
Reports indicate that Datamasters purchased and sold the sensitive data of individuals suffering from various medical conditions, including Alzheimer's and addiction, primarily for targeted advertising. Initially, the company denied dealing with Californian data but was forced to acknowledge the truth after presented with evidence, claiming they were manually reviewing the data instead.
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Regulatory Challenges for Datamasters
CalPrivacy's continued attempts to enforce compliance reflect the broader struggles regulators face in ensuring data protection amidst growing privacy concerns.
A Wake-Up Call on Data Privacy
This scandal serves as a stark reminder of the vulnerabilities surrounding personal information. As consumers become increasingly aware, the demand for more stringent regulations will only grow.
