You've Been Warned: These Companies Are Collecting And Selling Your Data

These days it feels like everyone wants your data. From security alerts to data breaches at big companies, it can feel like a losing battle to keep your personal information safe. In fact, a 2023 University of Pennsylvania survey of 2,000 Americans found that 79% felt they had little control over what marketers found out about them. However, while social media companies might be getting more attention for using this kind of data, they are not the culprit you should be most worried about. Rather, companies known as data brokers (that operate entirely on collecting, analyzing, and selling customer data) are a much bigger concern.

It's important to realize that the U.S. has a lack of consumer protection laws which makes it easier for companies to get your data. In fact, the U.S. has zero federal privacy laws to protect consumer information from data brokers. Instead, the U.S. relies on individual states to come up with their own consumer protection protocols which leads to a lot of gaps for consumers as some states (like, for example, California with its Consumer Privacy Act) prioritize consumer safety far more than other states. Plus, while you might think your data is only collected through online activity you could be surprised to learn just how many businesses you interact with on a daily basis are also after your data (for instance, even your tax preparer could be part of the problem). With the data broker market anticipated to surpass $545 billion in value by 2028, it's no wonder that everyone wants a piece.

You also might be surprised to learn just how much of your data you have technically consented to share with data brokers. Often, these consents are hidden in the fine print of user agreements and/or privacy policies for websites and apps (you know, the text you scroll past to hit in order to get to the "accept" button). However, this data consent can also be part of agreements for things like credit cards or even your bank (which absolutely watches your spending habits). Data brokers seek out everything from birth dates and Social Security numbers to home addresses, current jobs, political affiliations, and even health histories, all in an effort to sell more products.

Also, while retailers might've once purchased user data from data broker companies, increasingly they're moving toward collecting the data themselves. R.J. Cross, director of Public Interest Research Group's Don't Sell My Data campaign, explained to CNBC, "Retailers today are doing just about everything they can to get as much information about you as possible, because that's a whole new revenue stream for them. Almost every single company that you're shopping at today is in the business of selling your data, and you and your data are their latest product."

From loyalty/points programs to app usage to digital receipts, every interaction you have with a brand or company (both in person or online) is not only providing them with more information about your shopping behavior, but is also giving them yet another way to access your data.

Once data brokers have actually collected data from a consumer, they still need to essentially clean up and organize that data. This can involve combining/linking different elements of data they might have already collected about a consumer from one website with new data they might have received from an app. This can involve removing redundant data, purging unrelated data, and even updating out-of-date data. All of this is done to create packaged lists or market segments they can more easily sell; brokers will package the data into whatever market segment topic they feel might best appeal to their clients. Whether that's high-earners who buy luxury watches or people with disposable income for their dog, the more data these brokers collect the more ways they can divide and organize their data into sellable segments. (By the way, here are everyday habits shared by the world's wealthiest people.)

Some of the biggest companies in the data broker market might even be familiar to you: Experian, Equifax, Epsilon, and Oracle. These data broker companies generally appeal to businesses looking for specific audiences with which to market their products and/or brands. By collecting various data points, these companies can ensure that people with dogs receive mobile ads for pet stores, dog food brands, or even pet insurance. Or that people with good credit scores receive mail flyers for credit cards and pre-approval offers in their email. However, this targeting can quickly become more malicious (or even dangerous in the event of breaches) given the level of data these companies collect.