United States of America: California Privacy Protection Agency announced settlement agreement with Background Alert, Inc. over registration violations under Delete Act (SB 362)

On 26 February 2025, the California Privacy Protection Agency (CPPA) announced the settlement following its investigation into Background Alert, Inc. for failing to comply with the registration and fee payment requirements outlined in the Delete Act (SB 362). The Act requires data brokers, defined as businesses that collect and sell consumers' personal information without direct interaction, to register with the CPPA and pay an annual fee. The stipulated settlement entails the cessation of Background Alert's operations through 2028 as a consequence of its failure to register between 1 February and 8 October 2024. Additionally, the company is obligated to cease operations within the next 15 days and remain closed for a period of 3 years. In the event that Background Alert contravenes the terms of the settlement, including the stipulated shutdown requirement, it will be subject to a fine of USD 50,000.