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Regulators Tighten Rules on Data Brokers

Regulators Tighten Rules on Data Brokers

Regulators announced tighter rules for data brokers on Tuesday, requiring firms that collect and resell personal information to obtain clearer consent and to disclose, on request, where a person's data came from and who it was sold to.

The measures, which take effect next quarter, target an industry that has largely operated out of public view. Privacy advocates called them overdue; some brokers warned the compliance burden could fall hardest on smaller players.

Officials said enforcement would focus first on the most sensitive categories of data, with penalties scaling for repeat or large-scale breaches.

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