What does "third-party" data sharing refer to?

"Third-party" data sharing specifically refers to the practice of sharing personal information with external organizations that are not directly involved in the initial collection of that data. This occurs when an entity that gathers data—such as a business or service provider—disseminates that information to another organization. For instance, if a company collects customer data for its own purposes and then shares this data with another company for marketing, research, or other purposes, that sharing is considered third-party data sharing.

This is an important concept in the context of data privacy, as it raises issues around consent, transparency, and the potential misuse of personal information. Individuals typically have concerns about how their data is being handled, and third-party sharing can amplify those concerns if the original source of the data does not clearly communicate how it will be used or who it will be shared with.

The other options do not accurately depict third-party data sharing. For instance, collecting data exclusively for internal use would not involve any external sharing and thus does not align with the definition. Similarly, transferring data between two companies without consent suggests a lack of authorization rather than a standard practice of sharing with third parties. Lastly, while selling personal data to advertisers is a form of data sharing, it is a specific