The FTC issued warning letters to 13 data brokers reminding them of their obligations under the Protecting Americans' Data from Foreign Adversaries Act (PADFAA), which bans the sale or disclosure of sensitive personal data to foreign adversaries like China, Russia, Iran, and North Korea. The letters cite instances where recipients offered data on Armed Forces members, which is protected under PADFAA. Non-compliance could result in civil penalties up to $53,088 per violation.
The data brokers are instructed to conduct a comprehensive review of their business practices to ensure compliance with PADFAA.
In-house legal teams should review all vendor and customer agreements where the company acts as a data broker or data recipient. Specifically examine data sharing, sale, or licensing clauses to ensure they explicitly prohibit the transfer of 'personally identifiable sensitive data' (as defined by PADFAA) to any foreign adversary (China, Russia, Iran, North Korea) or entities controlled by them. Clauses involving data about U.S. Armed Forces members require heightened scrutiny and must be barred. Agreements should be amended to incorporate PADFAA's restrictions, mandate recipient representations regarding foreign adversary status, and require compliance certifications. Data processing agreements and internal data handling policies must be updated to reflect the new legal boundaries on data dissemination.
Entity
13 data brokers
Also known as: Data Brokers
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/02/ftc-reminds-data-brokers-their-obligations-comply-padfaa
military padfaa warning letter template
https://www.ftc.gov/system/files/ftc_gov/pdf/military-padfaa-warning-letter-template.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"13 data brokers"
"Protecting Americans’ Data from Foreign Adversaries Act of 2024 (PADFAA)"
"prohibits data brokers from selling, releasing, disclosing, or providing access to personally identifiable sensitive data about Americans to any foreign adversary"
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