Briefing

‘I Don’t Think I’m A Data Broker’ Is Not A Defense

security
by Allison Schiff ·

Audit data practices to confirm broker status and adjust compliance.

What to do now

Audit data practices to confirm broker status and adjust compliance.

Summary

Tony Ficarrotta, VP and general counsel of the Network Advertising Initiative, warned that claiming a company is not a data broker is not a defense against regulatory scrutiny. The statement came during a small‑group discussion where Ficarrotta emphasized that regulators define a data broker as any entity that aggregates, sells, or trades personal data. He noted that many companies mistakenly believe their data practices exempt them from broker regulations. The article explains that data broker status can trigger compliance obligations such as consumer consent, data minimization, and transparency disclosures. Ficarrotta urged firms to audit their data handling processes to determine if they meet broker criteria and to adjust policies accordingly to avoid penalties.

Key changes

  • NI's VP says not being a data broker is not a defense
  • Regulators consider data broker status
  • Data broker definition includes data aggregation and sale
  • Companies must assess broker criteria
  • Compliance needed to avoid penalties

Affects

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