Data Broker

A data broker is a company that collects, aggregates, analyzes, and sells personal or business information obtained from public records, online activity, social media, purchase histories, and other sources without a direct relationship with the individuals or businesses whose data they trade. The data brokerage industry generates an estimated $250 billion annually in the United States, with major players including Acxiom, Oracle Data Cloud, Epsilon, and LexisNexis. Data brokers categorize businesses and individuals into thousands of consumer segments used for marketing, risk assessment, fraud detection, and credit evaluation. For business owners — particularly LLC members and registered agents — data brokers create significant privacy and security concerns by publicly exposing personal addresses, phone numbers, and business filings that were intended to remain semi-private. States have begun regulating data brokers: California's Delete Act (SB 362) requires brokers to register and honor deletion requests through a centralized portal, Vermont requires annual registration and disclosure of data categories sold, and Texas prohibits the sale of certain sensitive personal data. Businesses concerned about founder privacy during entity formation can mitigate data broker exposure by using registered agent services that provide a business address in place of a personal residence — a standard service included in doola's formation packages. Additionally, companies processing vendor and customer data through their AP and AR operations must ensure compliance with emerging data privacy legislation; Quadient AP and AR platforms include data security controls, encryption, and access management features that support regulatory compliance. Regular data broker opt-out procedures should be part of every business's privacy management strategy.