How the $350 Billion Data Broker Industry Tracks and Sells Your Every Move
The data broker industry, valued at approximately $350 billion, operates in the shadows of the digital economy, buying, aggregating, and selling personal information on an estimated 270 million Americans. Our investigation traces how a single smartphone user's location data is sold an average of 487 times per day through real-time bidding systems, reaching hundreds of companies within milliseconds. We identify the major players in this ecosystem, document the specific types of data being traded, and reveal how this information has been used for purposes ranging from targeted advertising to government surveillance, stalking, and discrimination. With no comprehensive federal privacy law, the industry operates with virtually no oversight or accountability.
The Data Collection Ecosystem
Data brokers collect personal information through a vast network of sources. Mobile apps represent the largest source of location data, with our analysis identifying 2,300 apps that share precise GPS coordinates with data brokers. Weather apps, games, navigation tools, and flashlight apps all commonly harvest and transmit location data far beyond what their functionality requires. Beyond location, data brokers aggregate information from public records, social media, purchasing history, browsing behavior, and financial transactions. Major brokers including Acxiom, LexisNexis, and Oracle Data Cloud maintain profiles on virtually every American adult, with individual profiles containing an average of 1,500 data points. These profiles include demographic information, estimated income, health conditions, political affiliation, religious beliefs, and behavioral predictions. The data is refreshed continuously, with location data updating in real-time and behavioral profiles updated daily.
The Real-Time Bidding Pipeline
When you open an app or visit a website, your personal information including precise location, device identifiers, browsing history, and demographic data is broadcast to hundreds of companies through the real-time bidding system used for digital advertising. This process, which occurs within 100 milliseconds, effectively creates a continuous surveillance stream. Our monitoring of a single test device over 30 days revealed that location data was shared 14,610 times, averaging 487 transmissions per day. Each transmission went to an average of 48 companies. The data transmitted through RTB goes far beyond what advertisers need for targeting. It includes precise GPS coordinates accurate to within a few meters, lists of apps installed on the device, and browsing history. Data brokers positioned in the RTB ecosystem collect this information not to buy advertising but to aggregate and resell it, effectively converting the advertising system into a surveillance infrastructure.
Misuse and Harm
The data broker ecosystem has enabled a range of harms that extend far beyond targeted advertising. Government agencies including ICE, the IRS, and the FBI have purchased location data from brokers to track individuals without obtaining warrants, effectively circumventing Fourth Amendment protections. In one documented case, a Catholic organization purchased location data from Grindr to identify gay priests. Stalkers and abusers have used people-search websites powered by data broker information to locate victims. Insurance companies use data broker profiles to adjust premiums. Landlords use them to screen tenants. Employers use them for background checks that may include inaccurate or outdated information. The potential for harm is limited only by the imagination of those with access to the data, and access is available to anyone willing to pay, with some data broker services starting at just $14.95 per month.
Key Findings
- A single smartphone user's location data is sold an average of 487 times per day through real-time bidding systems.
- Major data brokers maintain profiles on virtually every American adult, with individual profiles containing an average of 1,500 data points.
- 2,300 mobile apps were identified sharing precise GPS coordinates with data brokers beyond what their functionality requires.
- Government agencies have purchased location data from brokers to track individuals without obtaining warrants.
Timeline
Wall Street Journal investigation reveals data broker Near Intelligence selling location data to U.S. government.
FTC bans data broker Kochava from selling sensitive geolocation data.
President signs executive order restricting bulk sale of Americans' personal data to foreign adversaries.
FTC proposes rule requiring data brokers to register and provide consumer opt-out mechanisms.