The First Data Broker Law

Vermont is the first state to enact a law that will regulate data brokers that aggregate and sell data about consumers. The driving impetus of the legislation is to provide consumers with more information about the collection of their data and to protect consumers from data theft. Vermont made a point of distinguishing data brokers from other types of businesses that collect information about their customers and that distinction hinges on having a direct relationship with the consumer. “Data broker means a business, or unit or units of a business, separately or together, that knowingly collects and sells or licenses to third parties the brokered personal information of a consumer with whom the business does not have a direct relationship,” according to the legislation. It should be noted that the law includes a fairly broad definition of “brokered personal information”. “Brokered personal information” includes many of the data types commonly…

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