Glossary > Privacy > Internet And Digital Privacy > Digital Footprints And Data Brokers

Data Brokers

Data brokers are companies that collect and sell information about individuals, often without their knowledge, to third parties for various purposes such as marketing, advertising, and risk assessment.

Example #1

Imagine you search online for running shoes, and the next day you see ads for running gear on various websites. This might be due to data brokers collecting your browsing history and selling it to advertisers.

Example #2

An insurance company purchasing data from a data broker to assess the risk level of potential clients based on their online activities and demographic information.

Misuse

Misuse of data by data brokers can lead to privacy violations and enable targeted ads that manipulate consumer behavior. For instance, if a data broker sells sensitive information like medical history to a health insurance provider without consent, it could lead to discriminatory practices and denial of coverage. Protecting against data broker misuse is crucial to safeguarding individuals' privacy and preventing discriminatory actions based on personal data.

Benefits

On the other hand, data brokers can provide benefits like personalized marketing that tailors offers and advertisements to individual preferences. For example, a retail company using data from a broker to offer discounts on products that align with a customer's past purchases and interests.

Conclusion

Data brokers can play a significant role in the digital economy, but their activities must be regulated to protect individuals' privacy and prevent harm. It is essential for consumers and employees to understand how data brokers operate and take steps to control the use of their personal information.