Vermont Leads the Way on Regulating Data Brokers

Vermont Leads the Way On Regulating Data Brokers

Data brokers have long operated under the radar. They regularly compile information that can result in us paying higher prices, being denied service or becoming victims of discrimination. And while other types of data collectors/distributors such as credit reporting agencies are federally-regulated, data brokers—existing in a regulatory vacuum—are not. They have also been completely free of any state regulation as well… until now.

Vermont has become the first state in the U.S. to have a law imposing disclosure and data security obligations on data brokers. Under this new law, data brokers must

  • register with the Vermont Secretary of State
  • provide greater transparency about information collected about consumers
  • maintain appropriate information security systems
  • not acquire or use personal information for stalking, committing fraud or engaging in discrimination

We congratulate the Vermont legislature on the passage of this landmark legislation and hope that it will be the first in a wave of similar laws to sweep across the nation!

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