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CPPA Settles with Data Broker Key Marketing Advantage for $55,800

Key Marketing Advantage, LLCJanuary 29, 2024California Privacy Protection Agency

Penalty Amount

$55,800

Summary

The California Privacy Protection Agency settled with data broker Key Marketing Advantage, LLC for failing to register and pay fees under the Delete Act. KMA will pay $55,800 and agree to injunctive terms. This is the fifth enforcement action in a sweep against unregistered data brokers.

Remedy

KMA must pay a $55,800 fine and comply with injunctive terms, including paying attorney fees for any future non-compliance.

Monetary PenaltyInjunction

Contract Impact

In-house legal teams should review vendor and data processing agreements with third-party data brokers, focusing on clauses related to regulatory compliance, fee obligations, and enforcement liabilities. Specifically, examine representations and warranties ensuring the data broker maintains active registration under the Delete Act, clauses allocating responsibility for annual fees and penalties, indemnification provisions covering regulatory fines and attorney fees, and audit rights to verify compliance status. Contracts may require amendments to mandate annual certification of CPPA registration, explicitly assign fee payment to the data broker, include termination rights for non-compliance, and address potential injunctive relief obligations. Given the upcoming DROP platform requirements, future agreements should also consider obligations related to consumer deletion requests.

Contract Search Terms

data broker registrationannual fee paymentDelete Act complianceCPPA registration requirementinjunctive termsattorney fees indemnificationcompliance deadlinedaily penalties

Laws Cited

Delete Act

Violation Types

Entity Details

Entity

Key Marketing Advantage, LLC

Also known as: Key Marketing Advantage

Industry

Data Broker

Official Sources

Related Enforcement Actions

CPPA

Key Marketing Advantage, LLC

$56K

The California Privacy Protection Agency (CPPA) settled with data broker Key Marketing Advantage, LLC for failing to register and pay fees under the Delete Act. KMA will pay $55,800 and comply with injunctive terms, including covering attorney fees for non-compliance. This is the fifth enforcement action in CPPA's sweep against unregistered data brokers.

CPPA

Ford Motor Company

$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.

CPPA

PlayOn Sports

$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.

CPPA

Rickenbacher Data LLC, d/b/a Datamasters

$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.

CPPA

ROR Partners LLC

$57K

The California Privacy Protection Agency fined ROR Partners LLC $56,600 for failing to register as a data broker under the Delete Act. The marketing firm sold custom audience lists built from consumer data without registration, highlighting that businesses collecting and selling personal information must comply with data broker requirements.

CPPA

Data Brokers

The California Privacy Protection Agency (CalPrivacy) announced the creation of a Data Broker Enforcement Strike Force to investigate privacy violations by data brokers. The strike force will focus on compliance with the Delete Act's registration requirement and the CCPA, building on previous enforcement actions. This initiative aims to hold data brokers accountable and protect Californians' personal information.