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FTC Warns 13 Data Brokers Over PADFAA Violations

13 data brokersFebruary 9, 2026Federal Trade Commission

Summary

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.

Remedy

The data brokers are instructed to conduct a comprehensive review of their business practices to ensure compliance with PADFAA.

Contract Impact

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.

Contract Search Terms

sensitive personal data definitionforeign adversary restrictiondata broker agreementsale of data clauseArmed Forces data prohibitionprohibited data recipientscompliance certificationdata classification schemaforeign transfer restrictionPADFAA compliance addendum

Laws Cited

Protecting Americans' Data from Foreign Adversaries Act of 2024

Violation Types

Entity Details

Entity

13 data brokers

Also known as: Data Brokers

Industry

Data Broker

Official Sources

Source Evidence

Entity Name
"13 data brokers"
Laws Cited
"Protecting Americans’ Data from Foreign Adversaries Act of 2024 (PADFAA)"
Violation Types
"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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