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Companies profit from personal data by selling it to advertisers, insurers, and data brokers without clear consent.
Google, smartphone apps, and data brokers often collect data silently through tracking and hidden policies.
New laws and fines aim to stop unfair data use, but misuse of personal data remains a major concern worldwide.
Today, personal data has become a valuable resource for many companies. This data includes names, addresses, browsing habits, shopping history, locations, social media activity, and even health or financial information. Often, this data is collected quietly, without clear permission. Companies then use or sell it in ways that bring them huge profits. This article explains how this happens, the latest examples, and why it matters.
Personal data is collected in many hidden ways. Smartphone apps, websites, loyalty programs, public records, and third-party services are some of the common sources. Many people are unaware of just how much information is gathered. Companies often hide details about data collection in long, confusing privacy policies. This makes it hard to know what is being shared or sold.
There are also businesses known as data brokers. These companies collect, buy, and sell large amounts of personal information. Some brokers claim to have details about billions of people. This includes very personal information, such as family members’ names, shopping preferences, and even estimated income levels.
One of the main ways companies make money is by selling or sharing data with advertisers. This allows ads to be shown to very specific groups of people. For example, a company may sell shopping data so advertisers can target young parents, pet owners, or people interested in fitness.
Some businesses change prices based on data about a person. This is called dynamic pricing. A person who appears wealthy based on collected data might see higher prices. In some cases, those with lower incomes may not get the best offers or discounts.
Insurance companies and lenders use personal data to decide rates and offers. Driving habits, shopping behavior, and even social media activity can be used to judge if a person is a “risky” customer. This can affect the cost of car insurance or the chance of getting a loan.
Governments and law enforcement agencies sometimes buy data instead of getting a warrant. This can include location data, utility records, and other private information. Many people do not know this is happening.
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A supermarket chain was recently caught selling data from its loyalty program to many third parties. The data included shopping habits and personal details. Some customers were wrongly labeled by gender or income, affecting the deals or discounts they received.
A popular antivirus company was fined for selling users’ browsing data without permission. This data included websites visited and shopping habits.
A major technology company was fined over a billion dollars in the United States for tracking users without proper consent. The company had collected location data, search history, and more, even when users thought tracking was off.
A well-known genetic testing company was fined after millions of users’ sensitive genetic information was stolen during a data breach.
A large social media company faced complaints for planning to use user data to train artificial intelligence systems without asking for clear consent.
Companies write privacy policies in complex language that is hard to understand. Important details about data sharing may be hidden deep inside these documents.
Many businesses assume consent unless a person takes steps to say no. This makes it easy for companies to collect and use data without active permission.
Data brokers often operate in the shadows. Many do not follow all the rules or register as required. This makes it difficult for people to track where their data goes.
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Governments and privacy groups are starting to take action. In Europe, privacy laws have led to billions of euros in fines for companies that misuse data. In the United States, new laws require businesses to explain what data they collect and delete it if requested. Some states are also banning the sale of biometric data, like fingerprints or facial scans, without consent.
Class-action lawsuits are becoming common, where groups of people sue companies for privacy violations. Large settlements have been paid in recent cases involving shopping apps, social media platforms, and antivirus software.
There is also a growing focus on how artificial intelligence uses data. Lawmakers are asking for stronger protections to stop personal information from being used without clear consent for AI training.
When data is misused, the harm goes beyond just seeing unwanted ads. People may face higher prices, unfair loan decisions, or even denial of job opportunities. Stolen data can also lead to fraud or identity theft. A person’s privacy and safety may be at risk when sensitive information falls into the wrong hands.
For businesses, getting caught misusing data can damage their reputation, lead to large fines, and cause customers to lose trust. The cost of fixing these problems is often much higher than simply protecting data in the first place.
Companies profit from personal data in many ways that are often hidden from the public. Data is collected quietly, sold, and used for advertising, pricing, insurance, loans, and more — all without clear consent in many cases. Recent examples show that both big and small companies are involved in these practices.
While new laws and fines are starting to push back, the problem remains widespread. Better rules, more transparency, and stronger enforcement are needed to ensure that data is used fairly and with proper permission. Until then, personal information will remain a valuable resource traded behind the scenes, often without people’s knowledge or approval.
