Futures

The Rising Influence of Data Brokers: Lobbying, Spending, and Privacy Concerns, (from page 20220717.)

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Summary

Data brokers, often unnoticed yet profitable, have significantly increased their lobbying efforts, spending $29 million collectively in 2020, rivaling major tech firms. Companies like Oracle were top spenders, with Oracle alone spending over $9.5 million, highlighting the industry’s substantial influence in Washington. As scrutiny around data privacy intensifies, states like California and Virginia have passed laws requiring data deletion and consent for data use. The data broker industry, while lucrative, is facing growing calls for regulation and transparency due to concerns about data security and privacy violations. Despite their lobbying efforts, many proposed bills aimed at increasing accountability and privacy protections for consumers have failed to pass. The industry’s complexity and its intertwining with larger tech firms complicate the public’s understanding and regulation of data privacy issues.

Signals

name description change 10-year driving-force relevancy
Increased Lobbying by Data Brokers Data brokers are significantly increasing their lobbying expenditures in response to regulatory scrutiny. Change from minimal public awareness and lobbying to significant expenditures and legislative engagement. In 10 years, data brokers may have established a powerful lobbying presence that influences privacy legislation. The driving force is the growing public concern over data privacy and the need for companies to protect their business interests. 4
Emerging Data Privacy Regulations New state-level data privacy laws are being enacted, impacting data broker operations and responsibilities. Shift from lack of regulation to stringent privacy laws requiring data brokers to disclose and manage data responsibly. In a decade, comprehensive data privacy laws may lead to a more transparent and accountable data broker industry. The motivation is increased consumer demand for privacy and protection of personal information. 5
Data Breaches and Security Concerns Frequent data breaches in the industry raise questions about data security practices among data brokers. From acceptable data handling practices to increased scrutiny and demand for accountability in data security. In 10 years, enhanced security measures and accountability standards may be commonplace in the data broker sector. The driving force is growing consumer awareness and regulatory pressure regarding data security breaches. 4
Consumer Awareness of Data Brokers Public awareness of data brokers and their practices is increasing, leading to calls for regulation. Transition from public ignorance to awareness and demand for legislative action against data brokers. In a decade, consumers may have a strong understanding of data broker practices, leading to stricter regulations. The motivation is the increasing realization of how personal data is collected and used without consent. 4
Big Tech and Data Brokers Collaboration Big Tech companies are increasingly collaborating with data brokers for targeted advertising and analytics. Shift from isolated operations to partnerships between Big Tech and data brokers for enhanced data utilization. In 10 years, partnerships may lead to highly sophisticated data analytics and targeted marketing strategies. The driving force is the pursuit of competitive advantage through data-driven marketing strategies. 3

Concerns

name description relevancy
Data Privacy Regulation Ambiguous definitions of data brokers and lack of federal oversight create gaps in consumer privacy protections. 5
Data Breaches and Security Massive data breaches, like Oracle’s, expose significant vulnerabilities in data handling practices. 4
Consumer Awareness and Misinformation Consumers are becoming more aware of data broker practices but may struggle to understand the complexities of data privacy laws. 3
Lobbying Influence on Privacy Laws High spending on lobbying by data brokers could distort legislative processes, undermining consumer protection efforts. 5
Consent and Data Usage Transparency Challenges in ensuring explicit consumer consent for data collection and use, compounded by vague industry definitions. 4
Impact of State Laws Diversity in state regulations could result in a patchwork of protections, complicating compliance for companies and protections for consumers. 4
Legislative Slowdown Many proposed privacy laws failed to pass, indicating a potential stagnation in consumer protections at the federal level. 4
Data Broker Identity Crisis Unclear identities of companies as data brokers may lead to evasion of regulations and consumer protections. 3
Targeted Advertising Risks Potential for misuse of extensive consumer data for harmful targeted advertising or manipulation. 4
Interconnection of Data Brokers and Big Tech Convergence of data broker services with Big Tech might amplify monopolistic data practices and privacy violations. 5

Behaviors

name description relevancy
Increased Lobbying by Data Brokers Data brokers are significantly increasing their lobbying efforts, rivaling major tech companies, to influence legislation on data privacy. 5
Regulatory Scrutiny and Legislation There is a growing trend of states enacting privacy laws that directly impact the operations of data brokers, reflecting increased regulatory scrutiny. 5
Consumer Awareness and Demand for Privacy Protections Consumers are becoming more aware of data brokers’ practices and are demanding stronger privacy protections from legislators. 5
Industry Self-Identification Challenges Companies within the data broker industry are struggling with self-identification, leading to inconsistencies in how they classify their operations. 4
Data Breach Concerns The industry faces rising concerns regarding data breaches and the security of the vast amounts of personal data they collect. 4
Push for Federal Data Privacy Laws Companies are advocating for a cohesive federal data privacy law to replace the current patchwork of state regulations. 4
Integration of Data from Diverse Sources Data brokers are increasingly acquiring and integrating data from diverse sources, enhancing their profiling capabilities. 4
Public and Legislative Backlash There is a notable backlash from the public and legislators against the data broker industry, leading to calls for more transparency and accountability. 5

Technologies

name description relevancy
Data Privacy Legislation New laws emerging to regulate data brokers and protect personal information of consumers. 5
Artificial Intelligence in Data Analytics Using AI to analyze vast datasets for insights, customer profiling, and targeted advertising. 4
Digital Dollar Development of a digital currency that facilitates transactions and data privacy. 4
COVID-19 Contact Tracing Technologies Tech solutions for tracking and managing health data during the pandemic. 4
Data Breach Security Standards Emerging standards aimed at improving data security and preventing breaches in data collection. 5
Consumer Data Protection Frameworks Frameworks designed to protect consumer data and ensure privacy in digital transactions. 5
Data Connectivity Platforms Platforms that connect multiple data sources for improved advertising and customer insights. 4
Risk Assessment Tools using Big Data Tools that utilize extensive datasets to assess risks for industries like insurance and finance. 4

Issues

name description relevancy
Data Privacy Regulations Growing state-level regulations on data privacy are emerging, particularly in California, Virginia, and Maine, impacting data broker operations. 5
Increased Lobbying by Data Brokers Data brokers are significantly increasing their lobbying efforts, rivaling Big Tech, indicating their influence on legislation. 4
Data Security Concerns Incidents like Oracle’s data breach highlight increasing concerns over how data brokers protect personal information. 5
Consumer Awareness and Demand for Privacy Public awareness regarding data broker practices is rising, leading to demands for stronger privacy protections. 5
Federal vs. State Regulation Dispute Debate between federal and state privacy laws is emerging as data brokers advocate for a unified federal approach. 4
Industry Definition Challenges The data broker industry’s lack of clear definition complicates regulatory efforts and consumer understanding. 3
Impact of COVID-19 on Data Privacy COVID-19 has prompted new privacy legislation addressing data collection related to contact tracing and consumer data. 4
Data Broker Accountability Legislation Proposals for mandatory audits and opt-out options for consumers are being introduced, signaling a push for accountability. 5