Data Brokers Are a Threat to Democracy 1
Unless the federal government steps up, the unchecked middlemen of surveillance capitalism will continue to harm our civil rights and national security.

You’ve probably never heard of Acxiom, but it likely knows you: The Arkansas firm claims to have data on 2.5 billion people around the world. And in the US, if someone’s interested in that information, there are virtually no restrictions on their ability to buy and then use it.

Enter the data brokerage industry, the multibillion dollar economy of selling consumers’ and citizens’ intimate details. Much of the privacy discourse has rightly pointed fingers at Facebook, Twitter, YouTube, and TikTok, which collect users’ information directly. But a far broader ecosystem of buying up, licensing, selling, and sharing data exists around those platforms. Data brokerage firms are middlemen of surveillance capitalism—purchasing, aggregating, and repackaging data from a variety of other companies, all with the aim of selling or further distributing it.

Data brokerage is a threat to democracy. Without robust national privacy safeguards, entire databases of citizen information are ready for purchase, whether to predatory loan companies, law enforcement agencies, or even malicious foreign actors. Federal privacy bills that don’t give sufficient attention to data brokerage will therefore fail to tackle an enormous portion of the data surveillance economy, and will leave civil rights, national security, and public-private boundaries vulnerable in the process.

Large data brokers—like Acxiom, CoreLogic, and Epsilon—tout the detail of their data on millions or even billions of people. CoreLogic, for instance, advertises its real estate and property information on 99.9 percent of the US population. Acxiom promotes 11,000-plus “data attributes,” from auto loan information to travel preferences, on 2.5 billion people (all to help brands connect with people “ethically,” it adds). This level of data collection and aggregation enables remarkably specific profiling.

Need to run ads targeting poor families in rural areas? Check out one data broker’s “Rural and Barely Making It” data set. Or how about racially profiling financial vulnerability? Buy another company’s “Ethnic Second-City Strugglers” data set. These are just some of the disturbing titles captured in a 2013 Senate report on the industry’s data products, which have only expanded since. Many other brokers advertise their ability to identify subgroups upon subgroups of individuals through criteria like race, gender, marital status, and income level, all sensitive characteristics that citizens likely didn’t know would end up in a database—let alone up for sale.

These companies often acquire the information through purchase, licensing, or other sharing agreements with third parties. Oracle, for example, “owns and works with” over 80 data brokers, according to a 2019 Financial Times report, aggregating information on everything from consumer shopping to internet behavior. However, many companies also scrape data that is publicly viewable on the internet and then aggregate it for sale or sharing. “People search” websites often fall into this latter category—compiling public records (property filings, court documents, voting registrations, etc.) on individuals and then letting anyone on the internet search for their information.

All of these unchecked practices undermine civil rights. Companies that boast holding thousands of data points on millions or billions of people—all for selling them to whomever is buying—themselves represent the aggregation of unrestrained surveillance power. This is particularly dangerous to the less powerful. As centuries of surveillance in the United States have made undeniably clear, the impact of stockpiling individuals’ personal information will fall hardest on the already oppressed or marginalized: the poor, Black and brown communities, Indigenous populations, LGBTQ+ individuals, undocumented immigrants. “People search” websites in particular can publicize addresses and thus enable intimate partner violence or doxing. The strong financial incentives to sell data, with virtually nonexistent limitations, gives these companies every reason to share their data with others, including those who use it for harm.

Law enforcement already buys up data from brokers. The Department of Homeland Security, including subagencies responsible for putting children in cages, have purchased cell phone location data on millions of Americans, home address information to support deportations, and home utility data for investigations, among others. The Federal Bureau of Investigation has also been purchasing cell phone location data from data broker Venntel. These practices circumvent democratic accountability: Agencies buy the information without warrants, and in doing so may bypass prohibitions on companies handing data directly to law enforcement. Plus, the data may not even be accurate. An investigation by The Markup identified dozens of US cases over the last decade where individuals were denied housing because screening companies used bad information, often purchased from data brokers or pulled from “people search” broker websites. Citizens also get rejected from jobs because of background checks relying on incorrect data.

The unregulated sale of massive databases of citizen information—and the unregulated aggregation and publication of that information online—also undermines national security. This was one of the missing elements of the policy debate over TikTok. If the US government is concerned about foreign authoritarian powers building detailed profiles on citizens, or even just on government personnel, then data brokers’ ability to sell, share, or publish intimate data sets on Americans with virtually no restriction should be of urgent concern too. Foreign powers could buy this data through shell companies or steal it by hacking. It could then be used to run microtargeted election ads. It could be used to inform counterintelligence operations or identify persons of interest in the business community. Criminal groups could even use this information to target politicians or judges.

Not to mention, the largest data brokers are lobbying more aggressively in Washington. Another recent investigation by The Markup found that 25 such companies spent $29 million on lobbying in 2020, rivaling the efforts of Facebook or Google. That’s why it’s more urgent than ever that legislators and regulators address this industry as a key part of protecting Americans’ privacy and curbing harms the industry causes abroad. With zero safeguards, this data sale will only continue threatening democracy. Federal privacy legislation should consider all companies that sell data as part of the data brokerage economy, not just those who sell data on third parties. Local and state laws on public records should likewise account for the intimate partner violence and doxing risks of that information getting scraped and published on the global internet. The unregulated practice of data brokerage is incredibly dangerous and ever more harmful—and policymakers can ignore it no longer.


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