Third-Party Disclosure

The practice of sharing, selling, or otherwise making personal information available to entities outside the direct business-consumer relationship. Unlike processor relationships where third parties process data solely on behalf of the business, third-party disclosures involve transferring data to entities that use it for their own purposes. Examples include: selling customer lists to data brokers, sharing browsing data with advertising networks, providing email addresses to marketing partners, or disclosing user information to affiliated companies. Privacy laws impose significant transparency and control requirements on third-party disclosures. Organizations must: disclose third-party sharing in privacy policies, identify categories of third parties receiving data, obtain appropriate consent or establish valid legal bases, honor opt-out rights for sales/sharing, contractually restrict third parties' use of disclosed data, and maintain records of disclosures. CCPA/CPRA distinguish between disclosures to service providers (with restrictions) versus third parties (triggering sale/sharing opt-out rights). Organizations should minimize third-party disclosures, vet recipients' privacy practices, and implement contractual protections.