The owner approaches the city for the data. The city gets an agreed return on the revenue. Think outside the jail cell. My city is either rich enough to not need more money or 99% of us have been put in the pokey...
To the best of my knowledge, Kyle Prall (Bustedmugshots, Justmugshots, CIA, associate Ryan Russells) are the only Mugshot website operators that actually use the various states records laws to obtain mugshots. They are never interested in the outcome of any criminal allegation, only the mugshot and booking charge. Many states are now denying him access to those records. The remainder of the websites scrape police booking websites.
I and the group I work with have been instrumental in getting legislation passed in Utah and Georgia that limits the activities of the mugshots website. Unfortunately, the legislation introduced in Florida will not pass this year. We now also have legislation introduced in Texas.
On a federal level, exceptions 6 and 7(C) [of the Freedom of Information Act] prohibit the release of mugshots and other information collected for police use. With the exception of the 6th US District, the courts have ruled that mugshots and police information is protected and cannot be released without the written authorization of the person the information is about. The two cases on this are Tulsa World Publishing V. DOJ (10th dist), and Karantsalis v. DOJ (11th dist.). Karantsalis was denied certiorari by the US Supreme Court.
In the 6th District, in the case of Detroit Free Press v DOJ. the court held that mugshots are only available during the short pendancy of active criminal prosecution. Before prosecution, and after the culmination of criminal prosecution, regardless of whether acquittal or conviction, mugshots and police information are not releasable under the FOIA. The Department of Justice is looking for the proper case to return to the court and ask for an en banc hearing to hold the 6th distict to the standards of the 10th and 11th districts.
We are working to have legislation introduced on a federal level that would shut down the mugshots websites.
The first amendment claims of the mugshot website does not hold up under scrutiny. The first amendment does have restrictions, a number of which mugshot websites are in violation of.
The social and individual harms caused by the mugshot industry is so immense that it is difficult to measure (in general also true of big data). Lost jobs, inability to get housing or work, forced criminal activities to survive, recidivism, and many other ills.
So yes you are correct.