What does "anonymization" refer to in data privacy?

Anonymization in data privacy refers specifically to the process of removing personal identifiers from data, making it impossible to link the data back to an individual. This process is important because it allows organizations to utilize data for analysis, research, or other purposes while safeguarding the privacy of individuals. By stripping away identifying information, organizations can mitigate the risk of exposing personal data and protect individuals' privacy rights, aligning with legal frameworks like the Data Privacy Act.

In contrast to the correct choice, the other options do not accurately define anonymization. Collecting data for marketing purposes involves the gathering of personal information, which does not inherently affect whether the data is anonymized. Sharing data with trusted third parties generally implies that identifiable data may still be involved, and only specific arrangements or agreements could provide additional privacy assurances. Storing data in encrypted formats deals with securing information against unauthorized access rather than anonymizing it, which focuses solely on the removal of identifiable details.