Vermont Law Rings in Registration, Disclosure for Data Brokers

A new Vermont law that imposes data security and annual disclosure obligations on data brokerage companies—the first of its kind in the country—takes effect Jan. 1.

The law comes as state and federal lawmakers ramp up pressure for more regulation of corporate data practices. Data brokers—businesses that aggregate data on individuals and sell or license it—must register with the state by the end of January.

“Consumers seldom know these companies even exist, possess little details about their practices, and are usually unfamiliar with available recourse,” Harry Valetk, a partner at Baker McKenzie’s global privacy and security group based in New ...