Key Takeaways
- Data brokers collect information from public records, purchase histories, social media, and many other sources.
- A single person may have a profile at hundreds of data broker companies simultaneously.
- The information brokers hold can include home addresses, financial indicators, health interests, and political affiliations.
- Most brokers offer an opt-out process, but it must be done company by company and usually does not delete data permanently.
- Several US states have enacted privacy laws that give residents stronger removal rights than the federal baseline.
Data brokers
Data brokers are companies that collect personal information about individuals from a wide range of sources, then compile that information into profiles that they sell or license to other businesses. They typically operate in the background, with no direct relationship to the people whose data they hold. Most Americans have profiles at dozens of broker companies without ever having signed up with them.
Data brokers are distinct from first-party data collectors (such as the apps and websites you use directly). They aggregate data from multiple secondary sources and resell it, a practice sometimes called the 'data supply chain.'
Where the data comes from
Data brokers do not rely on a single source. They aggregate information from dozens of streams and merge records that belong to the same person.
Public records form the foundation. Voter registrations, property tax records, marriage and divorce filings, court judgments, and business license applications are all publicly available in most states, and brokers harvest them systematically. Because these are government records, their collection is generally lawful.
Commercial data adds a second layer. Retail loyalty programs, warranty registration cards, subscription services, and online purchases generate transaction histories that companies can legally sell to third parties. When you hand over your email address for a discount, that address can travel further than the store's own marketing list.
Mobile apps contribute location data. Many free apps request location permissions, then share or sell that data to brokers who use it to infer where you live, work, worship, and seek medical care. This type of data is harder for consumers to trace because it moves through several intermediary companies before it reaches a broker's database.
Social media profiles set to public, obituary sites, online review platforms, and even data from other brokers round out the picture. Brokers cross-reference these streams using name, address, phone number, and email as matching keys.
Understanding where data originates helps explain why the problem is hard to contain. Reducing your exposure at one source rarely prevents brokers from filling the gap with another. For a plain-English breakdown of the terms used to describe these practices, see our guide to data privacy policy terms.
What brokers actually know about you
A mature data broker profile can contain far more than a name and address. The Federal Trade Commission (FTC) studied the industry and found that some brokers hold hundreds of data points per individual, grouped into categories that include:
- Contact details: current and historical addresses, phone numbers, email addresses
- Household composition: estimated number of residents, presence of children, relationship status
- Financial indicators: estimated income range, homeownership status, credit-related risk scores
- Health interests: inferred from purchase history and browsing, such as interest in specific medications or conditions
- Political and religious affiliation: inferred from voter registration, donation records, and browsing behavior
- Purchase behavior: categories of products bought, subscription services used
Brokers organize these points into segments with names like "diabetes interest," "senior in need of financial services," or "politically active household." These segments are what clients pay for; they allow marketers, insurers, employers, and others to target specific groups.
4,000+
Estimated number of data broker companies operating in the US
According to a 2014 Senate Commerce Committee report; the industry has grown since then, with current estimates running higher.
$300B+
Annual revenue of the global data broker industry
Figures cited by the International Association of Privacy Professionals (IAPP) in industry-size estimates.
Hundreds
Data points a single broker may hold per person
The Federal Trade Commission documented this range in its 2014 report on the data broker industry.
The detail in these profiles surprises many people. The misconception that anonymity is easy to maintain online is worth examining directly. Common privacy myths, and why they persist covers several of the assumptions that make these profiles possible in the first place.
What you can do to limit exposure
No single action removes you from all broker databases. What consumers can do is reduce their profile over time through a combination of direct opt-outs, data minimization habits, and, in some states, legal rights.
Submit opt-out requests directly
Most large data brokers publish an opt-out or data deletion page, sometimes called a "do not sell my personal information" link. The Privacy Rights Clearinghouse and similar nonprofit organizations maintain directories of broker opt-out links. Working through the list is time-consuming; a realistic approach is to start with the largest brokers and the people-search sites that display your home address publicly, since those carry the most immediate risk.
Check whether your state law gives you stronger rights
California's Consumer Privacy Act (CCPA) and its amendment CPRA, along with similar laws in Virginia, Colorado, Texas, and other states, give residents the right to request deletion of their data and to opt out of its sale. If you live in a state with one of these laws, the broker is legally required to honor a deletion request within a set timeframe. The National Conference of State Legislatures tracks the current status of state privacy laws for residents who want to verify their rights.
Reduce the data you generate going forward
Limiting future data collection does not undo existing profiles, but it slows how quickly they update. Practical steps include reviewing app location permissions on your phone, using a separate email address for retail loyalty programs, and keeping social media profiles set to private. These habits do not make you invisible, but they do reduce the volume of fresh data feeding into broker databases.
This article is for informational purposes only and does not constitute legal advice. Privacy laws vary by state and change over time. Consult a qualified attorney for advice specific to your situation.