Business

Delete Act: A New Challenge for Data Brokers in California

Published on Sep 18, 2023
Image Credit: Robinraj Premchand

Recently, the California Legislature passed a bill known as the "Delete Act," as reported by the Los Angeles Times. Once this bill becomes effective, consumers will have the convenience of requesting data brokers to delete their personal information and cease the acquisition and sale of such information in the future. Following its approval on Thursday, the bill will be forwarded to the governor for further consideration.

The Delete Act can evidently empower individuals to have more control over their own data, as well as help reduce the risk of unauthorized access or misuse of personal data. However, concerns have arisen regarding this bill. Dan Smith, the chairman of the local Consumer Data Industry Association, has highlighted its "serious flaws." The main issue lies in the provision of "one-step deletion of personal information," which could potentially be exploited by malicious entities. This could enable unauthorized deletion of consumer data without their knowledge or consent.

"Data brokers" encompasses various businesses that gather and trade personal information, including names, phone numbers, addresses, marital status, education, occupation, income, and spending habits. Many of these companies operate as credit reporting agencies, people search websites, and data analysis agencies. With the growing popularity of smartphones and wearable devices, data brokers have the capability to collect and sell users' real-time location information at any given moment.

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