Home Privacy Bombora Sues ZoomInfo For Allegedly Gaining An Unfair Advantage By Breaching CCPA

Bombora Sues ZoomInfo For Allegedly Gaining An Unfair Advantage By Breaching CCPA

SHARE:

Can companies use violations of the California Consumer Privacy Act (CCPA) to nail a rival for noncompetitive behavior?

We’re gonna find out.

B2B intent data company Bombora said Wednesday it is suing its former partner ZoomInfo for gaining an unfair data advantage through, it claims, repeated abuses of the CCPA.

Although CCPA enforcement doesn’t begin until July 1, the law went into effect on Jan. 1, which means it’s actively on the books.

In a complaint filed in the Santa Clara County Superior Court in mid-May, Bombora alleges that ZoomInfo – which went public on June 4 in a nearly $1 billion IPO with a roughly $16 billion valuation – is breaking California’s Unfair Competition Law by collecting and selling personal information without consent (which is a violation of CCPA).

In short, “can a breach of the CCPA count as a breach of the law under the unfair competition laws in the state of California?” said Havona Madama, Bombora’s chief privacy officer.

To the best of Madama’s knowledge, this is a novel and untested argument which could set a precedent.

Specifically, Bombora is accusing ZoomInfo, which is owned by business contact database company DiscoverOrg, of using a free ZoomInfo tool called Community Edition to collect and sell data without permission. Community Edition gives users free access to ZoomInfo’s database of millions of B2B profiles and contact info in return for sharing their business contacts. ZoomInfo also scans all of the emails that come in and out of a user’s inbox in order to scrape the signatures for its database.

The problem, according to the complaint, is that the tool gathers all of the contacts within a user’s address book without a contact’s knowledge and without giving that person the opportunity to opt out.

“This is setting up users to violate the CCPA, perhaps unknowingly, by receiving those contacts and reselling them without notifying them,” Madama said.

It’s important to note that Bombora and DiscoverOrg/ZoomInfo have history. Before DiscoverOrg acquired ZoomInfo last year, Bombora and ZoomInfo were data partners. A customer of both Bombora and ZoomInfo could use Bombora data in ZoomInfo products and vice versa.

The relationship went south when ZoomInfo, according to Bombora, didn’t disclose that it was building a competitive product to Bombora’s offering.

“Most likely, ZoomInfo will say we’re just being vindictive, but the practical reality is that it’s our mission as a company to make sure that data is ethically sourced and it’s our obligation to point these things out,” Madama said. “Contact data is the most sensitive data for individuals, and once you have it, you can pretty easily track people – which is exactly what the CCPA was set up to stop.”

A ZoomInfo spokesperson shared this comment: “The claims are meritless, and the lawsuit is Bombora’s attempt at retaliation against ZoomInfo for ending a vendor relationship with Bombora. ZoomInfo fully complies with the CCPA and the regulations issued by the California Attorney General. ZoomInfo intends to vigorously defend the suit and will respond on the timeline set by the court.”

Must Read

Single continuous line drawing robot riding pencil rocket flying in the sky. Tech education and creativity. Future technology development. Artificial intelligence. One line design vector illustration

Q3: Omnicom’s Media Business Is Growing, But Is It Agent-Proof?

If AI agents can plan and buy media, who needs a holding company? Good question. It came up during Omnicom’s Q3 earnings on Thursday.

Netflix Touts New Measurement Capabilities As It Struggles With “Modest” Engagement Growth

Netflix’s revenue grew 12% YOY to $12.9 billion in Q3, which it maintains is in line with its forecast. Its ads business, however, is lagging slightly compared with expectations, causing Netflix to tweak its forecast for the rest of the year.

Apple Publishes Its Plan To Wipe Out Web Tracking

Apple is coming for identity resolution. WebKit’s latest tracking crackdown targets the infrastructure behind post-cookie IDs – and switching to a first-party setup won’t necessarily spare vendors.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

AI Slop Sites Are On The Rise. Is Ad Tech Ready For Its New MFA Challenge?

Advertising supply chain intelligence company DecryptAds uncovered more than 2,100 AI-generated recipe sites that are monetized with programmatic ads and feature fabricated author profiles.

How Australian Home Lender Lendi Measures The Invisible Work Of AI

Most brands and businesses are trying to figure out how to improve their metrics when it comes to AI – and also what those metrics even are.

AI Startup Minerva Built An Agentic CDP, But Don’t Call It That

Minerva wants to turn fragmented customer data into something marketers can use, with AI agents doing the work behind the scenes.