CPPA's Enforcement Division Inks Settlement with Fifth Data Broker

SACRAMENTO — The Enforcement Division of the California Privacy Protection Agency (CPPA) has reached a settlement agreement with data broker Key Marketing Advantage, LLC (KMA) for failing to register and pay an annual fee as required by the Delete Act. The CPPA's Board voted unanimously to approve the settlement during a January 27 closed session.

The settlement is the result of a continued investigative sweep of data broker registration compliance, announced on October 30, 2024. Businesses that operated as data brokers in 2024 have until January 31 of this year to register with the CPPA or face fines of $200 per day.

KMA, a Connecticut-based data broker, will pay $55,800 to resolve the Enforcement Division's claims that the company failed to register between February 1 and November 5, 2024. In addition to the fine, the company agreed to injunctive terms, including agreeing to pay the Enforcement Division's attorney fees and costs resulting from any non-compliance.

“This marks the fifth action we've taken against unregistered data brokers in the past few months,” said Michael Macko, the head of enforcement at CPPA. “Our ongoing enforcement shows that we'll continue to bring transparency and accountability to the data broker industry. With the next registration deadline around the corner, we encourage data brokers to register before the daily fines start to accrue.”

The Delete Act requires data brokers to register and pay an annual fee that funds the California Data Broker Registry. The fees also fund the development of the first-of-its-kind deletion mechanism, called the Delete Request and Opt-Out Platform (DROP), that will allow consumers to direct all data brokers to delete their personal information in a single request. DROP will be available to consumers in 2026.

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The California Privacy Protection Agency (CPPA) is committed to promoting the education and awareness of consumers' privacy rights and businesses' responsibilities under the California Consumer Privacy Act.

Individuals can visit privacy.ca.gov to access helpful and up-to-date information on how to exercise their rights and protect their personal information. In addition, the Agency's website provides important information about CPPA board meetings, announcements, and the rulemaking process.