First AdTech Company Fined by CA for Failing to Register as a Data Broker
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tl;dr -
California settled with 2 companies for failing to register as Data Brokers
The fines sum up to over $100k
This marks the first time the CPPA has settled with an AdTech company
This is the 2nd round of settlements in less than 60 days
California's Privacy Protection Agency announced on Dec 23rd, 2024 they reached a settlement with two more Data Brokers for failing to register as required by the California Delete Act.
The fines amass to over $100,000 and mark the 3rd and 4th settlements reached under the Delete Act in less than 60 days.
Who are they?
Infillion is a NYC based advertising company that settled with the CPPA for $54,200 for not registering as a Data Broker after the Jan 1st, 2024 deadline until November 4th.
This marks the first time an AdTech company has settled with the CPPA under the Delete Act.
The Data Group, LLC is a Florida-basedData Broker that promises "Customer Data Enhancement & Insight Services". The Data Group settled for $46,600 for failing to register between February 1st, and Sept 20, 2024.
Why the increased enforcement?
It's likely not a coincidence that these actions are announced right before the annual registration period for Data Brokers begins on January 1st.
The current Data Broker registry is woefully underpopulated, and the CPPA has a mandate to develop a new Data Rights Opt-Out System (DROPS) by mid-2026. The CPPA is clearly hoping this will spur an increase in registrations by Data Brokers in the 2025 enrollment season.
What should you do?
Companies that deal in data about consumers they don't have a direct relationship with likely need to register as a Data Broker in California, Texas, Vermont, and Oregon or they could face fines of over $200 a day plus administrative costs for the state to bring charges against you.
If you still aren’t sure if the Delete Act impacts your business, book some time with us at Superset and we’ll help you evaluate your business’ needs free of charge.
If your business regulated by the California Delete Act, you may have missed the deadline but you should still register as soon as possible, and the easiest way to do that is a self-serve platform like Superset.