How Does California Define a Data Broker?

Under the California Delete Act and related provisions of the California Consumer Privacy Act, a “data broker” is generally defined as a business that knowingly collects and sells to third parties the personal information of a consumer with whom the business does not have a direct relationship.
The definition focuses on two primary elements:
  • No direct relationship with the consumer, and
  • Sale of personal information to third parties.
A “direct relationship” typically means the consumer intentionally interacts with the business – for example, by purchasing a product, creating an account, subscribing to a service, or otherwise knowingly providing information directly to the company.
Businesses that obtain personal information from third-party sources and then sell, license, or otherwise make that information commercially available may fall within California’s statutory definition.
California’s framework also includes specific exclusions and cross-references to broader CCPA definitions. Because the state imposes enhanced registration, deletion, and documentation obligations – including participation in the centralized deletion mechanism – organizations should conduct and document a formal California-specific applicability analysis.

 

For operational guidance and structured compliance documentation tools, visit the CLIClaw Data Broker Compliance Library.

 

This FAQ is provided for general informational purposes only and is not legal advice. It is intended as a starting point for understanding the issues discussed and should not be relied on as a substitute for advice from qualified legal counsel.