Enforcement action · California Privacy Protection Agency (CPPA) Enforcement Division

Background Alert, Inc. settlement with California Privacy Protection Agency

Background Alert, Inc. settlement with California Privacy Protection Agency is an AI-related enforcement action involving California Privacy Protection Agency (CPPA) Enforcement Division. Penalty: monetary_fine of $50000. California's CPPA settled with data broker Background Alert for failing to register under the Delete Act, requiring a three-year shutdown and a conditional $50,000 fine.

Action details

Agency
California Privacy Protection Agency (CPPA) Enforcement Division
Jurisdiction
CA
Enforcement type
settlement
Document type
news analysis
Penalty
$50000 monetary_fine
Effective
2025-02-27
AI risk category
high
Topic
ai privacy

Summary

The California Privacy Protection Agency (CPPA) reached a settlement with data broker Background Alert, Inc. for violating the Delete Act by failing to register and pay an annual fee. Background Alert, which boasted its ability to collect 'scary' amounts of information and create profiles based on inferences, is required to cease operations until 2028 and faces a $50,000 fine if it violates the settlement terms. This action is part of an ongoing enforcement sweep and signals CPPA's commitment to protecting consumer privacy regarding profiling and inferences.

Primary source

https://cppa.ca.gov/announcements/2025/20250227.html →

Frequently asked questions

What is Background Alert, Inc. settlement with California Privacy Protection Agency?
The California Privacy Protection Agency (CPPA) reached a settlement with data broker Background Alert, Inc. for violating the Delete Act by failing to register and pay an annual fee. Background Alert, which boasted its ability to collect 'scary' amounts of information and create profiles based on inferences, is required to cease operations until 2028 and faces a $50,000 fine if it violates the settlement terms. This action is part of an ongoing enforcement sweep and signals CPPA's commitment to protecting consumer privacy regarding profiling and inferences. Primary source →
Which agency brought the action?
California Privacy Protection Agency (CPPA) Enforcement Division brought this enforcement action in CA. Primary source →
What was the penalty?
The disclosed penalty is a monetary_fine amount of $50000. Primary source →
When did the action take effect?
The action was effective 2025-02-27. Primary source →
Where can I find the primary source?
The primary source for Background Alert, Inc. settlement with California Privacy Protection Agency is at https://cppa.ca.gov/announcements/2025/20250227.html. AIGI does not paraphrase secondary commentary — every claim on this page links back to that primary source. Primary source →

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