A new law, considered among the strictest of its kind in the world, took effect in California at the start of the year, granting residents enhanced control over their personal data held by data brokers. The California Privacy Protection Agency estimates that over 500 companies actively collect and aggregate personal information from various sources, selling it to marketers, private investigators, and other entities.

Consumer Watchdog, a non-profit organization, reported in 2024 that data brokers gather information from automakers, technology firms, fast-food chains, and device manufacturers, compiling details on individuals' finances, purchases, family circumstances, dietary habits, exercise routines, travel patterns, entertainment preferences, and a wide array of other personal data belonging to millions. This practice has raised concerns about privacy and the potential for misuse of personal information.

Two years prior, California implemented the Delete Act, mandating that data brokers provide residents with access to their personal data upon request and allow them to demand its deletion. However, Consumer Watchdog criticized the initial implementation of the Delete Act.

The new law aims to streamline the process of data removal, offering a more efficient mechanism for individuals to scrub their data from these brokers' databases. The law's enactment reflects a growing global trend towards stricter data protection regulations. The European Union's General Data Protection Regulation (GDPR), for example, has set a precedent for comprehensive data privacy rights, influencing similar legislation in other jurisdictions. The California law is seen as a significant step in the United States towards aligning with these international standards.

The implications of this law extend beyond California, potentially influencing data privacy practices globally. As companies adapt to comply with the stringent requirements of the California law, they may be compelled to adopt similar practices in other markets, leading to a broader enhancement of data privacy protections for individuals worldwide. The effectiveness of the new law and its impact on the data broker industry will be closely monitored by privacy advocates, businesses, and policymakers alike.