A growing number of today’s global businesses use some form of data collection. Data analytics is often added to the equation to process these collections in order to read or predict market trends. The term “analytics” is familiar to many because it partly serves, for now at least, as a guide to business decision-making and can shape the directional outlook of any company by driving revenue projections. Data is, after all, valuable. But it is the how, where, and by whom this data is collected and shared that dictates the interpretation of data privacy laws and the reach of regulatory compliance.

First vs. Second vs. Third-Party Data Collection

To better understand the technical language of data privacy laws, it is necessary to classify and distinguish the type of individual or entity collecting data. Terminology is therefore important. Third-party data collection is often heard when discussing privacy laws and assignment of responsibility and liability. Data is not collected from proprietary sources but instead by a third party individual or entity who will then sell or give it to a company. The purchasing or receiving company can then use the data for what some legal ethicists worry are endless and indeterminable reasons. Other analysts contend data is simply a means to a definite end and used to achieve a relatively benign business or marketing purpose or even just a means for research and development.