Learn what dataBehind the scenes, hundreds of companies you’ve never heard of are quietly collecting, buying, and selling information about you. These companies, called data brokers, play a massive role in the modern digital economy. brokers are, how they collect your information, and simple steps you can take to protect your privacy and limit what they know about you.  

What is a data broker? 

Also called information product companies, data brokers gather information about people, analyze and organize it, and sell it to other organizations – typically for marketing purposes. They compile everything from basic contact details to extremely detailed personal profiles. Data brokers know things like your interests, purchase habits, demographic information, and online behavior. 

Data brokers generally fall into two categories: 

• People-search brokers, which focus on contact info, addresses, and public records. 

• Marketing or analytics brokers, which package consumer behavior data to for more effective advertising.  

Many brokers do both.  

What do data brokers know about me?

Data brokers likely know more about you than you think. While the exact data varies by broker, it often includes:

• Your name and contact information

• Current and past addresses

• Phone numbers and email addresses

• Demographic information (like your age range, general location, etc.)

• Online activity

• Purchase history

• Social media activity shared with public audiences

• Device and location data

• Interests and browsing patterns

• Public records such as property ownership, criminal history, bankruptcy filings, and voter registration

Some data brokers also buy information from apps, loyalty programs, retailers, and third-party platforms. When you sign up for a new service or give your email address to a retailer, there might be fine print that they can share this information with data brokers.

Generally, this data is aggregated without your explicit knowledge. Most of us never interact with data brokers directly.

Why do data brokers collect so much data?

Data brokers collect so much data because your data is extremely valuable! The Big Data market is worth hundreds of billions of dollars.

Companies use brokered data for:

• Targeted advertising

• Credit and insurance risk modeling

• Identity verification and fraud detection

• Location analytics

• Political outreach

• Background checks

Most data brokers claim that the information they share is used to “improve customer experiences” or “deliver relevant ads,” but the industry is vast and not very transparent. This system feels invisible and difficult to control for most people – because it usually is!

Are data brokers legal?

In the United States, data broker activities are generally legal because there’s no single federal privacy law restricting them. Some regions and countries have laws requiring data brokers to obtain consumers' consent, such as the GDPR (General Data Protection Regulation) in Europe.

Data brokers in the U.S. operate within a patchwork of laws that cover things like credit reports and children’s data, but much of the information they collect isn’t strictly regulated. Some states – like California, Colorado, and Vermont – do require data brokers to register or follow extra privacy rules. But overall, the industry remains loosely regulated, which is why the data broker system is so widespread.

Why data brokers matter for your privacy

Even if you don’t think you have anything to hide, data brokers can still affect your life in ways you may not expect. Unfortunately, scammers can sometimes access the data sold by data brokers.

• Spam and scam exposure: When your info is widely available, scammers have more ammunition.

• More targeted phishing attempts: Scammers can use detailed personal data to craft convincing messages.

• Unwanted ads and profiling: You might be creeped out that a simple Google search can result in all your ads suddenly changing to be more "personalized."

• Reduced anonymity: Brokered data can connect your identity across platforms even when you try to stay private.

• Potential for misuse: Any large data store could be breached, leaked, or sold to bad actors.

The good news: you do have some control.  

How to limit what data brokers know about you

While you can’t eliminate data brokers, you can reduce the amount of data they collect, store, and share.

Limit what you share online

Small choices add up:

• Reduce the amount of personal info you post publicly on social media.

• Avoid online quizzes or fun personality tests – they often use your answers as data!

• Don't give apps unnecessary permissions.

Review your privacy settings 

Most apps and online services default to collecting more data than they need. Review what your apps and software know about you:  

• Location permissions 

• Ad personalization settings 

• Sharing settings 

• Connected apps and integrations 

Turn off anything you don’t need. There are also many new technologies and tools focused on data privacy that you can start using – check out our guide here! 

Create a separate email for shopping and sign-ups 

A simple trick is to use one email for regular communication and create another for subscriptions, newsletters, and online orders. This reduces the amount of data linked to your real identity. 

Delete old accounts and regularly audit your apps 

Old accounts can continue feeding data to brokers for years. Audit your devices for apps and accounts you no longer use and delete those accounts! Trust us, it's liberating! 

Opt out of data brokers 

Many brokers provide opt-out forms on their websites, but you must go to each website...and there are hundreds. It takes time, but it’s currently the most direct way to remove your information from major databases. 

You can also use paid services like Incogni, DeleteMe, Aura, and Optery to opt-out your information from data brokers. Look up guides from Consumer Reports or Tom's Guide for recommendations.

You don't have to hand over all your data to brokers  

Data brokers are a huge but often invisible part of the digital world. They collect information, sort it, analyze it, and sell it – usually without you ever interacting with them directly. And while the system can feel overwhelming, taking a few small, consistent steps can make a difference. 

For more information on data privacy, become a Data Privacy Week Champion!