The following guest article was written by Daniel Goldberg, the founder of Alternative Data Advisors, LLC and a Senior Advisor and Data Strategist to a portfolio of data, analytics, and AI companies – currently advising his clients on data strategy, GTM and monetization.
Most regulatory milestones announce themselves loudly and are well anticipated. This one didn’t. On August 1st, 2026, California’s Delete Request and Opt-Out Platform (DROP) quietly transitioned from registration into active enforcement. DROP is the first meaningful stress test of a core assumption the alternative data industry has relied on for years.
Core assumption: Third‑party, scraped, and panel‑sourced data is a durable, reliable and scalable asset.
This is now being challenged under DROP.
The Mechanics of DROP
Under the Delete Act (Senate Bill 362) which was originally approved in October 2023, California residents can now file a single deletion request that reaches every registered data broker in the state (upwards of 600). From January 1, 2026, more than 350,000 California residents enrolled before enforcement even began. Data brokers must check DROP at least every 45 days, delete matching records and report compliance back to the state. Penalties for noncompliance are significant at $200 per violation per day.
Do Third Party Data Sets become Depleting Assets
A meaningful share of the alternative data economy, especially the categories Wall Street depends on, was built on frictionless sourcing and limited downstream traceability. Of note, geolocation panels, credit and debit card transaction data, clickstream and app usage data, email receipt panels, and scraped web behavior all rely on the assumption that once data is collected, it stays collected.
DROP is likely to challenge that assumption. It reframes third‑party behavioral data as a depleting asset rather than a fixed one. Coverage decay is an ongoing concern and the operational cost of maintaining compliant datasets rises accordingly.
DROP introduces a recurring erosion cycle into datasets that were historically treated as static. Specifically, a panel that looked robust in July may be noticeably thinner by September, and thinner again 45 days later. For data buyers underwriting multi‑year contracts on the assumption of stable coverage, language will need to be included in contracts, if not already, on panel / user stability.
There are Many Unanswered Questions
The unresolved questions associated with DROP are where things could get interesting for data strategists.
- How deep does DROP penetrate: Does a consumer deletion request flow downstream to resellers and licensees, in addition to the originating broker?
- What happens to data within trained models: What does deletion mean when the data has already been absorbed into a trained model?
- Will other states follow California: With up to a dozen states reportedly exploring similar frameworks, is California a one‑off or just the first of many?
These questions, and others, will determine whether DROP becomes a significant gamechanger for the existing alternative data ecosystem.
First-Party, Proprietary Data Rises in Value
For those data asset owners with proprietary, or first party, data, DROP should be a win. If third‑party data becomes less stable and more expensive to maintain compliantly, the relative value of first‑party, consent‑rich, and provenance‑clean data increases. Companies with strong first‑party data pipelines will see their assets appreciate as third‑party datasets become harder to sustain.
For complete details and instructions visit https://privacy.ca.gov.
Author’s Biography
Daniel Goldberg is the founder of Alternative Data Advisors, LLC and a Senior Advisor and Data Strategist to a portfolio of data, analytics, and AI companies – currently advising his clients on data strategy, GTM and monetization.
Previously, Daniel served as Chief Data Strategy Officer at Coresight Research and Founder and CEO of Tangent Data Services, the first real-time data analytics platform sourced from email receipts for institutional investors. Daniel’s earlier career includes serving as an Investment Analyst at Hunter Global Investors, Managing Director and Senior Analyst in Equity Research at Bear Stears and Audit Manager at Ernst & Young.
A recognized thought leader and board member in the alternative data ecosystem, Daniel holds a Bachelor of Accountancy from The George Washington University and is based in Los Angeles.
To reach Daniel Goldberg contact him at either daniel@tangentds.com or (917) 273-1983.