California bans data broker reselling health data of millions

California's Privacy Protection Agency (CalPrivacy) has taken a significant enforcement step, banning the marketing firm Datamasters for illegally selling the health and personal data of millions of users without proper registration as a data broker. The firm is now prohibited from future data sales and mandated to delete all existing data.

Strategic Impact: This action underscores the escalating regulatory pressure on data brokers and organizations handling sensitive user data. For CISOs and security leaders, it's a critical reminder of the need for comprehensive data governance frameworks and rigorous third-party risk management. Understanding your organization's data supply chain, ensuring all partners are legally compliant, and maintaining transparent data handling practices are paramount. This move signals a clear intent from regulators to enforce privacy laws stringently, especially concerning health data, increasing the compliance burden and potential legal exposure for non-compliant entities.

Key Takeaway: Regulators are actively enforcing data privacy laws, particularly against opaque data brokering, demanding transparency and accountability across the data ecosystem.

Source: https://www.bleepingcomputer.com/news/legal/california-bans-data-broker-reselling-health-data-of-millions/