Privacy Exposure
Because brokers compile information from many sources, the resulting profiles can reveal sensitive details such as daily movements, health visits, or religious activity that individuals never directly disclosed.
In plain English
Companies that quietly buy and sell your data.
Data brokers are companies that gather details about you from many sources and sell that information to other businesses, governments, or third parties.
Simple example
In May 2026, Reuters reported that the Pentagon acknowledged foreign actors were using commercially available location data — the kind compiled and sold by data brokers — to target U.S. military personnel.
Why it matters
What the term actually changes.
National Security
Officials have warned that foreign governments and other adversaries can purchase commercial datasets to identify service members, intelligence officers, or sensitive facilities.
Legal Gaps
No comprehensive federal law specifically governs the sale of location data, leaving oversight to a patchwork of sector-specific statutes like HIPAA and state laws such as the California Consumer Privacy Act.
How it works
The mechanics, in practice.
Data Collection
Brokers obtain data from apps, websites, loyalty programs, public records, and other companies, often through software development kits embedded in mobile applications.
Aggregation And Sale
They combine information from many sources into detailed profiles and sell access to advertisers, insurers, employers, government agencies, and other purchasers.
Limited Consumer Control
Most consumers cannot easily see what brokers know about them; opt-out rights depend on state laws and vary widely by company.
Related guide
Should Congress restrict the sale of Americans' location data?
A look at how commercial data brokers handle Americans' location information and the debate over whether federal law should limit those sales.
Read the guide → Related issue brief
Should Congress restrict the sale of Americans' location data by commercial data brokers?
Lawmakers weigh new limits on a multibillion-dollar industry amid national-security concerns and warnings about unintended economic effects.
Read the brief →You’ve learned the term. Now vote.
Should Congress restrict the sale of Americans' location data by commercial data brokers?
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