The Legality of Data Sales: Protecting Privacy While Earning

Data has become one of the world’s most valuable digital assets. Technology companies, retailers, financial institutions, advertising platforms and data brokers collect enormous amounts of information about consumers and use it to generate revenue.

This raises an important question: Is it legal to sell personal data?

The answer depends heavily on the country, state, type of data, purpose of processing and rights given to the individual.

In the United States, there is no single comprehensive federal consumer privacy law covering all personal information. Instead, businesses must navigate federal laws, state privacy legislation and sector-specific regulations. California’s privacy framework is particularly important, while other states have introduced their own comprehensive laws. By 2024, at least 20 U.S. states had enacted comprehensive consumer privacy laws, according to the National Conference of State Legislatures (NCSL).

Outside the U.S., jurisdictions such as the European Union, United Kingdom, Canada and Australia have established significant privacy frameworks.

The modern approach is therefore not simply “Can data be sold?” but rather:

“Under what circumstances can personal data be collected, used, shared or sold lawfully?”

What Does “Selling Data” Actually Mean?

Data sales generally involve transferring personal information to another organization in exchange for money or another commercial benefit.

Examples include:

• Selling customer databases
• Selling email lists
• Providing consumer profiles to advertisers
• Licensing location information
• Selling browsing or purchasing information
• Providing demographic datasets
• Sharing information with data brokers
• Selling marketing leads
• Licensing consumer behavior data

However, not all data is equally sensitive. A report containing aggregated statistics such as:

“65% of consumers in a particular market prefer online shopping”

is fundamentally different from a database containing:

“John Smith, 35, john@example.com, lives at [address], recently purchased a medical product.”

The second example contains information that may identify an individual and potentially reveal sensitive characteristics.

California’s official privacy authority defines personal information broadly as information that identifies, relates to, or could reasonably be linked to a person or household. This can include names, email addresses, purchase history, browsing history, location data and profiles created by businesses.

Is Selling Personal Data Legal in the United States?

Sometimes—but businesses cannot assume that collected data can automatically be sold. The United States has a fragmented privacy system. Federal laws regulate particular industries or types of information, while state laws increasingly give consumers rights over their personal information.

The Federal Trade Commission (FTC) also uses its authority against companies engaging in unfair or deceptive privacy practices. This means a business could potentially face legal problems even when there is no single federal law saying “you cannot sell this particular database.”

Major U.S. privacy considerations include:

1. Federal consumer protection law
2. State comprehensive privacy laws
3. Sector-specific regulations
4. Children’s privacy rules
5. Health information restrictions
6. Financial privacy requirements
7. Data broker regulations
8. State data-breach laws
9. Rules concerning sensitive location information
10. FTC enforcement against deceptive practices

California: One of the Most Important U.S. Privacy Regimes

California is particularly important because the California Consumer Privacy Act (CCPA), as amended by the California Privacy Rights Act, provides consumers with significant rights concerning personal information.

California consumers may have rights concerning:

• Knowing what personal information is collected
• Knowing how information is used
• Knowing whether information is sold or shared
• Deleting personal information
• Correcting inaccurate information
• Opting out of certain sales or sharing
• Limiting certain uses of sensitive personal information
• Receiving equal treatment when exercising privacy rights

California’s definition of personal information includes categories such as browsing history, geolocation, purchase history, employment information and profiles created from personal data.

This creates an important distinction:

A company may be able to monetize information, but California law can give consumers meaningful rights to control certain uses and sales.

The U.S. Data Privacy Landscape Is Expanding

The American regulatory environment has changed dramatically in recent years. According to NCSL, 49 states and the District of Columbia considered more than 800 consumer privacy bills in 2025, while more than 30 states enacted at least 100 new privacy-related laws.

Selected U.S. states with comprehensive privacy laws

This list is not exhaustive, and applicable thresholds and requirements differ between states.

What About the European Union?

The European Union takes a considerably more comprehensive approach through the General Data Protection Regulation (GDPR). The GDPR applies to organizations processing personal data in circumstances covered by the regulation and establishes principles governing how personal information can be processed.

The European Commission identifies several fundamental principles, including:

• Lawfulness and transparency
• Purpose limitation
• Data minimization
• Accuracy
• Storage limitation
• Security
• Accountability

The Commission explains that organizations cannot simply collect personal information for undefined purposes; they must establish specific purposes and process only information necessary for those purposes.

GDPR lawful bases

A business generally needs an appropriate legal basis for processing personal data. These include:

1. Consent
2. Contract
3. Legal obligation
4. Vital interests
5. Public task
6. Legitimate interests

Importantly, consent is not the only possible lawful basis. The UK’s Information Commissioner’s Office similarly explains that organizations do not always need consent when they have another valid lawful basis.

However, using legitimate interests does not provide an unlimited right to sell personal data. The organization must consider necessity, proportionality and the individual’s rights.

United Kingdom: Can Companies Sell Personal Data?

The UK has its own data protection framework based primarily on the UK GDPR and Data Protection Act 2018, with the regulatory framework continuing to evolve. The Information Commissioner’s Office states:

“You must have a lawful basis to use people’s information.”

The ICO also says organizations must identify a lawful basis before sharing personal data and be able to demonstrate that they considered the issue.

This means a company cannot simply say:

“We collected the information, therefore we own it and can sell it.”

Ownership of a database does not automatically eliminate individuals’ privacy rights. For businesses monetizing information in the UK, important questions include:

• Was the data collected transparently?
• What was the original purpose?
• Is the proposed sale compatible with that purpose?
• Is there a lawful basis?
• Are individuals informed?
• Does the data contain special-category information?
• Can individuals object?
• Are international transfers involved?

Canada: Meaningful Consent Matters

Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) applies to many private-sector organizations and establishes principles for handling personal information.

The Office of the Privacy Commissioner of Canada emphasizes meaningful consent.

Its guidance states:

“Meaningful consent is an essential element of PIPEDA.”

People should understand the nature, purpose and consequences of the collection, use or disclosure of their information. This has important implications for data monetization.

If a business collects information for one reason and later wants to sell it for another purpose, it should not assume that the original interaction automatically provides sufficient permission.

Australia: Data Trading Is Specifically Addressed

Australia provides an especially useful example because the Office of the Australian Information Commissioner (OAIC) specifically addresses trading in personal information.

The OAIC describes trading as collecting or disclosing someone’s personal information to another person for a benefit, service or advantage.

Examples include buying or selling personal information and selling mailing lists.

The OAIC states that organizations trading personal information must comply with the Australian Privacy Principles. It also explains that consent can be critical in circumstances involving such trading.

For sensitive information, Australian privacy law can impose particularly strong requirements, while consent must be informed, voluntary, current and specific.

Comparing Major Advanced Economies

The important trend is clear: advanced economies increasingly treat personal information as something individuals have rights over—not simply as an unrestricted corporate asset.

Data Brokers: Where the Biggest Risks Can Occur

Data brokers sit at the center of the data monetization debate. They can collect information from multiple sources, combine it and create profiles that may be sold to advertisers, businesses or other organizations.

The U.S. FTC has taken increasingly aggressive action against certain data brokers.

In 2024, the FTC announced action against Mobilewalla over allegations involving the collection and sale of sensitive location data. The agency said the information could reveal people’s homes and visits to sensitive locations. The FTC subsequently finalized an order banning Mobilewalla from selling sensitive location data.

The agency also took action against X-Mode/Outlogic over the sale of precise location information capable of revealing visits to medical facilities, places of worship and domestic-abuse shelters.

In 2026, the FTC announced a proposed settlement involving Kochava that would prohibit the company from selling, sharing or disclosing sensitive location data without affirmative express consent in specified circumstances. The FTC said the data involved hundreds of millions of mobile devices.

These cases demonstrate that sensitive data can carry substantially greater legal risk than ordinary marketing information.

Statistics: Why Consumers Care About Data Sales

Privacy concerns are not theoretical. A 2023 Pew Research Center survey of 5,101 U.S. adults found that:

• 81% were concerned about how companies use the data they collect.
• 73% felt they had little or no control over data collected by companies.
• 67% said they understood little or nothing about what companies were doing with their personal data.
• 42% were very worried about companies selling their information to others without their knowledge.
• 61% believed privacy policies were ineffective at explaining how companies use their data.

These numbers create a major business lesson:

Privacy is increasingly a trust issue as well as a legal issue. A company that monetizes data without transparency may damage its reputation even when a particular activity appears technically permissible.

Read Also: How Corporations Profit From Your Data: How to Get Your Cut

How Can Businesses Earn Money From Data Legally?

Data monetization does not have to mean selling identifiable customer records. Businesses can create revenue through privacy-preserving models.

1. Sell Aggregated Data

Instead of selling individual records, sell statistical insights.

For example:

“Consumer spending increased 17% among online shoppers aged 25–34.”

This can be much safer than providing names, addresses and phone numbers.

2. Sell Properly De-Identified Data

Businesses can remove or transform identifying information before commercializing a dataset. However, simply deleting names may not be enough. Other information can sometimes be combined to identify an individual.

3. Sell Market Research

Businesses can conduct surveys and sell the resulting market intelligence. Participants should be appropriately informed about the purpose and intended uses.

4. Build Analytics Products

Instead of selling raw data, businesses can sell:

• Analytics dashboards
• Market intelligence
• Consumer trends
• Industry reports
• Forecasting tools
• Business intelligence
• Advertising insights

5. Create Permission-Based Data Programs

Companies can invite consumers to voluntarily participate in data-sharing programs. The stronger model is one where participants understand:

• What is collected
• Why it is collected
• Who receives it
• How long it is retained
• How it is used
• What compensation they receive
• How they can withdraw where applicable

Data Monetization: Safe vs. Risky

A 10-Step Data Monetization Compliance Checklist

Before selling or commercializing personal data, businesses should:

1. Identify the data.
2. Determine whether it is personal or sensitive information.
3. Identify applicable jurisdictions.
4. Determine the lawful basis for processing.
5. Review the original collection purpose.
6. Check whether additional consent is required.
7. Provide transparent privacy information.
8. Use anonymization or aggregation where possible.
9. Vet third-party recipients.
10. Document compliance and security measures.

Businesses should also consider whether the information crosses international borders because international data transfers can create additional obligations.

Can Individuals Sell Their Own Data?

There is growing interest in platforms that allow individuals to monetize their own information. In principle, a person may voluntarily participate in legitimate data-sharing or research programs.

However, users should carefully examine:

• Who receives the information
• Whether the data can be resold
• Whether the information can identify them
• Whether sensitive information is involved
• Whether consent can be withdrawn
• How long the information will be retained
• Whether the company is reputable
• What happens after the company is acquired

The amount of money offered should not be the only consideration. Selling sensitive information for a small payment could create long-term privacy consequences that are difficult or impossible to reverse.

The Most Valuable Data Strategy May Be Privacy-Preserving

The future of data monetization is unlikely to be about simply collecting as much personal information as possible. Instead, businesses can create value through privacy-preserving analytics.

This includes:

• Aggregation
• Anonymization
• Pseudonymization
• Differential privacy
• Federated learning
• Secure data clean rooms
• Synthetic data
• Privacy-enhancing technologies

These approaches can allow businesses to extract commercial value while reducing the exposure of identifiable individuals.

Conclusion

The legality of data sales varies significantly between the United States and other advanced economies.

In the United States, businesses must navigate a combination of federal laws, FTC enforcement, state privacy legislation and sector-specific requirements. California’s CCPA/CPRA is particularly important, while the number of states adopting comprehensive privacy laws continues to grow.

In the European Union and United Kingdom, comprehensive data protection frameworks place strong emphasis on lawful processing, transparency, purpose limitation and individual rights.

Canada emphasizes meaningful consent, while Australia specifically recognizes the concept of trading in personal information and regulates it under its privacy framework.

The key lesson for businesses is simple:

Data can be an asset without becoming a free-for-all.

The most sustainable approach is to monetize data responsibly through aggregated insights, properly de-identified datasets, market research, analytics products and transparent permission-based programs.

As regulators increasingly scrutinize data brokers and sensitive information, businesses should treat privacy not merely as a legal requirement but as a competitive advantage.

After all, consumers may be willing to exchange information for valuable services—but they increasingly expect to know what is being collected, why it is being collected and who is making money from it.

FAQ

Is it legal to sell personal data in the United States?

Yes, in some circumstances, but businesses must comply with applicable federal, state, and industry-specific privacy laws. States such as California give consumers significant rights over the sale and sharing of their personal information.

Can I legally make money from my personal data?

Yes. Individuals can participate in legitimate data-sharing, research, or data-monetization programs. However, they should understand how their information will be collected, used, shared, and protected before agreeing.

Is selling data legal under the GDPR?

Data sales are not automatically prohibited under the GDPR, but organizations need a valid legal basis for processing and must comply with transparency, purpose limitation, data minimization, and other GDPR requirements.

What is the safest way to monetize data?

The safest approach is generally to monetize aggregated, anonymized, or properly de-identified data rather than identifiable personal information. Businesses should also use strong security measures and comply with applicable privacy laws.

Source: usercentrics.com