California shuts down data broker for failing to register

Summary: The California Privacy Protection Agency (CPPA) has mandated the closure of Background Alert, a data broker, for three years due to non-compliance with the state’s Delete Act. This unprecedented action stems from Background Alert’s failure to register with the state, which is required for all data brokers. The CPPA expressed concerns over the invasive marketing practices of the company, which uses public records to create detailed profiles about individuals.

Affected: Background Alert

Keypoints :

• The CPPA requires data brokers to register annually and comply with the Delete Act.
• Background Alert’s business model involves compiling a vast amount of public records to make inferences about individuals.
• The order reflects California’s aggressive stance on regulating data brokers to enhance consumer privacy and safety.