Sharing personal data is a cornerstone of many business operations. It enables organisations to collaborate more effectively, improve customer experiences, and promote public safety.
However, knowing when data sharing is lawful and when it crosses into unlawful territory is crucial.
Non-compliance with data protection laws can lead to penalties, reputational damage, and loss of trust. This guide will help you understand when and how to share data responsibly.
When It’s Lawful to Share Data
1. Improving Efficiency and Service Quality
Data sharing becomes lawful when it enhances workflows or delivers significant benefits to individuals.
Example: Health and social care providers sharing patient data to offer seamless, well-informed care.
Example: Banks exchanging financial histories with credit agencies to simplify loan applications, ensuring faster decisions for customers.
Example: HR providers accessing employee records to streamline payroll and administrative support.
Transparency is key—ensure individuals are informed about how their data will be used.
2. Preventing or Investigating Crime
Data sharing is lawful when it supports law enforcement or prevents fraudulent activity.
Example: A retailer providing CCTV footage to police for a criminal investigation. Notifying the suspect may not be required in such cases.
Example: Financial institutions sharing suspicious activity reports to prevent money laundering.
Tip: For more insights on sharing data for crime prevention, refer to our Fraud Prevention Guide.
3. Protecting Vulnerable Individuals
Safeguarding vulnerable groups is often a valid and lawful reason to share data.
Example: Sharing data with authorities to prevent child exploitation or online grooming.
Example: Coordinating with social services to provide necessary support to at-risk adults.
4. Responding to Emergencies
In life-threatening situations, data sharing is critical and lawful.
Example: A pharmacist sharing a patient’s medication history with emergency responders to ensure proper treatment.
Example: Notifying communities of imminent safety risks, such as natural disasters.
In these scenarios, timeliness and accuracy can make a significant difference.
When It’s Unlawful to Share Data
1. Lack of a Lawful Basis
Data sharing without a valid legal justification is unlawful.
Example: A supermarket sharing loyalty card data with a pet store to target potential customers without obtaining consent or informing individuals.
2. Inadequate Security Measures
Failing to secure shared data appropriately is a breach of data protection laws.
Example: Sending unencrypted personal data over insecure email channels, increasing vulnerability to breaches.
Ensure secure transmission methods, such as encryption and access controls, are always in
place.
3. Insufficient Protection for Sensitive Data
Sensitive personal data, such as health records or political affiliations, requires additional safeguards.
Example: Sharing an individual’s sensitive data without protective measures could lead to discrimination or misuse.
Even with a lawful basis, failing to provide adequate protection for sensitive data is unlawful.
4. Blanket Data-Sharing Agreements
Overly broad or unrestricted data-sharing agreements often fail to meet legal requirements.
Example: Two organisations agreeing to share all customer data without evaluating the necessity of each instance.
Tailored agreements with clear terms and safeguards are essential.
5. Lack of Transparency
Data sharing becomes unlawful when individuals are not informed about how their data will be used.
Example: A retailer selling customer data to third-party marketers without obtaining consent or notifying customers.
Clear privacy notices help maintain transparency and legality.
6. Sharing Excessive or Unnecessary Data
Only share data relevant to the intended purpose.
Example: An online retailer sharing a customer’s payment details with a delivery service when only their name and address are needed.
Minimising data sharing reduces risks and aligns with data protection principles.
7. Improper Handling of Children’s Data
Children’s personal data is subject to stricter protections, and sharing it requires compelling justification.
Example: Selling children’s data to third parties for marketing without considering their best interests.
Adhering to child-specific data protection guidelines is non-negotiable.
Best Practices for Lawful Data Sharing
To ensure your data-sharing practices remain compliant:
Identify a Lawful Basis: Document the legal justification for sharing personal data.
Use Data-Sharing Agreements: Establish clear agreements for recurring data-sharing activities, outlining roles, responsibilities, and safeguards.
Maintain Transparency: Inform individuals about data-sharing practices through accessible privacy notices.
Ensure Security: Protect data with robust encryption, secure channels, and access restrictions.
Conduct Regular Audits: Periodically review data-sharing arrangements to ensure compliance and effectiveness.
Provide Staff Training: Equip your team with knowledge about data protection laws and their responsibilities.
Final Thoughts
Data sharing can unlock significant opportunities for businesses and their stakeholders when done responsibly. By adhering to legal standards, maintaining transparency, and implementing robust safeguards, you can share data confidently and ethically, while fostering trust with customers and partners.
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