What does "third-party data sharing" mean?

"Third-party data sharing" refers to the practice of transferring data to external entities that are not the original source or the data subject. This can involve sharing personal data with vendors, partners, service providers, or any organization outside of the one that collected the data. This definition highlights the notion that the recipient of the data is a separate organization, underscoring the need for compliance with privacy regulations that govern such data transfers to ensure that individuals' privacy rights are protected.

In the context of privacy compliance, it’s crucial to handle third-party data sharing with care, including ensuring that proper consent has been obtained where required, and that contractual agreements are in place to protect the data once it is shared. This is in contrast to the other choices, which highlight different scenarios of data handling that do not specifically capture the essence of what third-party data sharing entails.