And Why Regulators Are Coming for Them in 2025
In a time when your digital footprint is more valuable than gold, data brokers are the shadowy middlemen profiting from your personal information—often without your knowledge or consent. But as public awareness grows and laws like California’s CCPA (California Consumer Privacy Act) evolve, the pressure is mounting.
Let’s break down what data brokers do, how they make money, and why they’re now facing serious heat from privacy regulators in 2025.
What Is a Data Broker?
A data broker is a company that collects, aggregates, and sells personal information about individuals. They don’t usually have a direct relationship with you. Instead, they gather your data from public records, social media platforms, apps, loyalty programs, or other third-party sources.
They may know:
- Where you live
- What you buy
- What you browse
- Your political leanings
- Even your health concerns
Once compiled, this data is packaged and sold to marketers, insurers, political groups, or other interested buyers—sometimes in real time.
How Do Data Brokers Make Money?
Data brokers monetize your information in several ways:
- Consumer profiles sold to advertisers
- Location data sold to hedge funds or political campaigns
- Email lists for targeted marketing
- Risk scores for banks or insurance companies
And because most of this happens behind the scenes, users are rarely aware of how often their data is exchanged—or how inaccurate those profiles can be.
Why Are They Under Fire in 2025?
Regulatory bodies are finally catching up. In July 2025, the California Privacy Protection Agency (CPPA) reported that over 60% of audited data brokers were failing to comply with CCPA requirements, including:
- Failing to allow users to opt out of data sales
- Not providing adequate transparency reports
- Ignoring access or deletion requests
These violations are not just legal lapses—they erode public trust and expose consumers to real-world risks, from discrimination to identity theft.
👉 Read more about the CPPA’s enforcement audit and what it means for privacy in our full report.
What Can You Do About It?
While comprehensive federal laws are still lacking, individuals do have some tools at their disposal:
- Use opt-out tools like DeleteMe, Privacy Bee, or Permission Slip
- Be mindful of app permissions and browser extensions
- Use private browsers like Incognito Browser or Brave
- Submit data access and deletion requests when possible
Data brokers thrive on opacity. The more hidden their operations, the more profitable they become. But 2025 may finally be the year regulators start shining real light on the industry—and demanding consequences.
And as California tightens enforcement, other states may soon follow.
