# What is a data broker?

> What is a data broker? Consumer data brokers aggregate and sell personal profiles. In AI the word is also used loosely for finders who match firms and buyers.

By Matt Burns, Vaultfish. Canonical: https://vaultfish.com/answers/what-is-a-data-broker  
Published: 2026-08-03  
Updated: 2026-10-13

## The short answer

A data broker collects personal information from multiple sources and sells it. The FTC describes these companies as operating largely behind the scenes. In AI, the word also means a finder matching companies with AI buyers. The two meanings are different businesses with different rules and different registration requirements.

## What is the consumer meaning of data broker?

This is the meaning in state law and in privacy news. The FTC's report, "Data Brokers: A Call for Transparency and Accountability," describes companies that operate largely behind the scenes, gathering and sharing personal information about consumers ([FTC](https://www.ftc.gov/reports/data-brokers-call-transparency-accountability-report-federal-trade-commission-may-2014)).

California's registration law defines a data broker as a business that knowingly collects and sells to third parties the personal information of a consumer with whom it has no direct relationship ([Civ. Code 1798.99.80](https://cppa.ca.gov/regulations/pdf/data_broker_reg_delete_act_statute_eff_20260101.pdf)).

Brokers register each January and process deletion requests from 1 Aug 2026.

## What does data broker mean in AI?

In AI, "data broker" and "data brokerage" are what people call it when they place company records with AI buyers.

A finder spots a company with records buyers want and makes the introduction. On this site the folks on the other end are buyers, and the finders are advisors or referral front ends.

Some get paid a success fee, a percentage of what you receive. Others are referral partners, paid by the buyer when an introduction reaches a milestone. Ask each one which model it uses and who pays it.

## Why do the consumer and AI meanings of data broker get mixed up?

Searchers and journalists use one word for a seller of personal profiles and for a finder who matches companies with AI buyers, so a page that says "data broker" can mean either one.

When someone tells you they are a data broker, ask which meaning they intend and what personal information, if any, passes through their hands.

A finder who never receives or sells personal information doesn't obviously match California's verbs.

That is my reading of the text, and I found no regulator guidance. [California data broker registration](/answers/california-data-broker-registration) walks through the statute. Counsel decides how it applies to you.

## How do you check a company that calls itself a data broker?

Ask four things: the legal entity, the fee model, whether it ever holds your data, and who pays it. Then look for a published terms page and a disclosure of referral fees.

The [data licensing advisor page](/answers/data-licensing-advisor) lists the conflict questions, and [data broker commission](/answers/data-broker-commission) covers who pays each kind of intermediary.

Talk to a privacy or commercial lawyer in your state before you sign.

Figure: comparison of Two meanings of data broker: Consumer data broker (emphasized: State registration laws use it, Sells people's profiles), AI data broker (Introduces buyers). The consumer meaning comes first because state registration laws use it.

_Vaultfish helps you run the process. We are not lawyers and this is not legal advice. If you need counsel who knows this area, we can point you to one._

## Sources

- [FTC](https://www.ftc.gov/reports/data-brokers-call-transparency-accountability-report-federal-trade-commission-may-2014)
- [Civ. Code 1798.99.80](https://cppa.ca.gov/regulations/pdf/data_broker_reg_delete_act_statute_eff_20260101.pdf)