The California Privacy Protection Agency settled with data broker Background Alert, Inc. for failing to register and pay fees under the Delete Act. The company must shut down its operations through 2028 or face a $50,000 fine. This action is part of a broader enforcement sweep against non-compliant data brokers.
Background Alert is required to cease all data broker operations for three years, through 2028, and will incur a $50,000 fine for any violation of this shutdown requirement.
In-house legal teams should review all vendor, customer, and data processing agreements where the company acts as a data provider or processor. Focus on clauses addressing data broker registration status, annual fee payment obligations, restrictions on consumer profiling and inferences, and compliance with deletion mechanisms like DROP. Agreements may require amendments to include specific representations and warranties ensuring ongoing Delete Act registration, timely fee payments, and prohibitions on non-compliant profiling practices. Additionally, operational suspension or shutdown clauses should be evaluated for enforceability and alignment with the settlement's three-year cessation requirement.
Entity
Background Alert, Inc.
Also known as: Background Alert
Industry
Data BrokerOfficial Press Release
https://privacy.ca.gov/2025/02/data-broker-promoting-ability-to-dig-up-scary-amounts-of-information-agrees-to-shut-down/
settlement background alert
https://privacy.ca.gov/wp-content/uploads/sites/357/2026/01/settlement_background_alert.pdf
California Privacy Protection Agency Enforcement Page
https://cppa.ca.gov/enforcement/
The California Privacy Protection Agency announced that over 300,000 Californians have signed up for the Delete Request and Opt-out Platform (DROP) since its launch five months ago. The Data Broker Registry now includes 581 registered data brokers, the highest number since the registry was established in 2020. Beginning August 1, 2026, all data brokers will be required to access DROP and process deletion requests.
The California Privacy Protection Agency launched a statewide roadshow to promote its Delete Request and Opt-out Platform (DROP), which allows California residents to request deletion of their personal information from all registered data brokers in a single request. The roadshow aims to increase awareness of data privacy rights and the DROP tool, which data brokers are legally required to process starting August 1, 2026.
$376K
The California Privacy Protection Agency settled with Ford Motor Company for $375,703 after finding that Ford violated the CCPA by requiring email verification for opt-out requests, creating unnecessary friction. Ford must implement easier opt-out methods, conduct a website audit, and comply with global privacy controls.
$1.1M
The California Privacy Protection Agency settled with PlayOn Sports for $1.10 million over CCPA violations, including failing to provide adequate opt-out mechanisms and improperly tracking users, particularly students. The company must implement proper opt-out methods, improve disclosures, and comply with children's data consent requirements.
The California Privacy Protection Agency (CalPrivacy) announced the appointment of Sabrina Boyson Ross as its first Chief Privacy Auditor and the formation of a new Audits Division. The division will conduct regulatory examinations of businesses to determine compliance with the California Consumer Privacy Act, and its findings may lead to enforcement referrals.
$45K
Datamasters, a data broker, failed to register with the California Data Broker Registry as required by the Delete Act. The company sold sensitive personal information including health conditions, age, race, and political views. As a result, it must pay a $45,000 fine and cease all sales of Californians' personal information.