Which requirement must the personal information controller fulfill when working with third parties?

Study for the Data Privacy Act Test. Utilize multiple-choice questions and detailed explanations. Prepare effectively for your certification exam!

The requirement that a personal information controller must fulfill when working with third parties is to ensure a comparable level of protection for the personal data being processed. This means that when personal data is shared with another party, the controller retains responsibility for the protection of that data, necessitating that the third party implements adequate data protection measures that align with the standards of the Data Privacy Act. This protective measure is crucial to mitigate risks of data breaches and to maintain the trust of the data subjects, ensuring their information is safeguarded regardless of where it is processed.

While informing the data subject is important, it does not directly address the protection of the data once shared with a third party. Providing compensation for data loss, although a possible consequence of a data breach, is not a proactive requirement when engaging third parties. The necessity of a signed contract is significant for defining the terms of data handling but does not in itself guarantee that the third party implements the necessary protections for the data. Thus, ensuring a comparable level of protection is pivotal in establishing a reliable and secure data handling process with third parties.

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