California to Create Data Broker Registry, Fines for Failure

Data brokers that collect and sell personal information must register with California’s Attorney General starting Jan. 1, 2020 or face fines, under a new state law.

The measure, A.B. 1202, signed by Gov. Gavin Newsom (D) Oct. 11, applies to businesses that collect and sell to third parties the personal information of consumers with whom they don’t have a direct relationship.

Brokers will pay a fee and register with the attorney general, who will then post information about them on the office’s web site. Those that fail to register would pay penalties up to $100 a day.

The bill, authored by Assemblyman Ed Chau (D), is intended to help inform consumers about data brokers as a complement to California’s landmark privacy law that takes effect in January.

Once the information about them is publicly available through the registry, consumers could exercise their rights under the California Consumer Privacy Act to ask the brokers what information they have about them, ask them to delete it, and opt out of having their data shared with others.

Credit reporting agencies and financial institutions are not subject to the measure.