California’s Privacy Laws Have Teeth, and They’re Biting
California isn’t playing around when it comes to data privacy. With recent crackdowns on Background Alert, Inc. and Honda, the California Privacy Protection Agency (CPPA) is making it clear: violating the state’s privacy laws can come with serious consequences.
Data Broker Background Alert Shut Down
The CPPA recently forced Background Alert, Inc. to shut down for three years after it failed to register as a data broker under the Delete Act. The company, which sold personal profiles and bragged, “It’s scary how much information you can dig up on someone,” now faces a $50,000 fine if it tries to operate before 2028.
The Delete Act requires data brokers defined as businesses that collect and sell personal data without direct consumer relationships to register annually or risk fines of up to $200 per day. In 2026, the Act will launch the Data Broker Requests and Opt-Out Platform (DROP), a tool that will let consumers delete their info from all registered data brokers in one go.
Honda’s $632,500 Privacy Violation Fine
It’s not just data brokers in the hot seat. Honda was fined over $600,000 for making it unnecessarily difficult for Californians to exercise their privacy rights. The company:
Forced users to verify their identity with excessive data;
Made privacy opt-outs hard to access;
Blocked authorized agents from handling requests; and
Shared consumer data without proper safeguards.
To resolve the claims, Honda agreed to implement a simpler process for Californians to assert their privacy rights, retrain employees, and revise contracts to better protect consumer data.
The Takeaway: Compliance Isn’t Optional
California leads the charge in data privacy, with some of the strongest enforcement in the U.S. But don’t forget about the data broker laws in Oregon, Texas, and Vermont. I have personally seen active enforcement in Texas for failure to register.
For consumers, these enforcement actions may be a win. But for businesses, the message is clear: adapt or pay up.