What Is Data Sharing?

In today’s digital world, data sharing plays a pivotal role in various sectors – for instance healthcare, education, business and government are all driven by digital advancements.

But exactly what is data sharing and why is it so crucial? We look at the fundamentals of the practice to help you better understand why your personal information may be being shared internally or to third parties outside of the organisation you gave them to.

What is Data Sharing?

Data sharing typically means an organisation has opted to disclose your personal data to either different parts of the same organisation, or others within the same group or under the same parent company. It can also cover the disclosure of personal data to external organisations.

Data is often shared with third parties for various reasons that can help organisations and individuals in many ways. For instance, companies may share data with specialised organisations such as marketing firms to help businesses understand their customers better so they can create more effective and targeted advertising campaigns. Sharing data can also enhance business operations such as the outsourcing of customer support or the use of cloud services for data storage and management.

Data sharing in some sectors is necessary for legal and regulatory compliance, ensuring that organisations adhere to industry standard and laws.

Collaborating with other organisations often involves data sharing to foster partnerships and drive innovation such as working on a new product or service.

What Are the Benefits of Data Sharing?

Data sharing offers significant advantages for both organisations and individuals. For businesses, it enables more precise marketing, leading to better customer and engagement and retention. By understanding consumer behaviour and preferences, companies can tailor their products and services more effectively.

Consider the last time you visited a website. You probably saw a pop-up about cookies improving your experience. After accepting, you may have noticed targeted ads featuring products you’ve previously viewed, or of a similar kind. This is how data sharing helps companies connect with potential customers.

Beyond marketing, data sharing in recent years has had a profound impact on healthcare and research, creating more advanced and stable services for the public. For example, the NHS uses shared data to enhance patient care, support public health, and drive medical research. With access to complete patient histories, healthcare providers can offer personalised treatment, minimise errors, and improve outcomes. This data also helps to track disease patterns, identify outbreaks and implement preventative measures.

While these are just a couple of examples, the benefits of data sharing extend much further in our daily lives. It supports innovations in transportation right through to education, helping personalise learning experiences and improving student outcomes. The potential outcomes of data sharing are ever-growing and are undoubtedly transforming our world.

What Are the Concerns About Data Sharing?

While data sharing offers many benefits, it also comes with concerns and risks. Two of the biggest risks are privacy and security – and often the two go hand in hand.

When companies collect and share personal information, it means that there are more places where this data must be protected and that can sometimes be tricky to manage, particularly if one system is less robust than another.

Data breaches are becoming more common, and when sensitive information is exposed, it can have serious consequences. Hackers can steal financial details, health records and other personal data, causing harm to individuals and organisations. The implications of a data breach can extend far beyond unwanted emails, it can lead to identity theft, or even blackmail.

There is also the risk of data being used unethically. If there are not strict and cohesive regulations in place, there is a danger that data could be sold to third parties without consent. This may also lead to companies using shared data to manipulate consumer behaviour, such as targeting vulnerable individuals with high-pressure sales tactics.

Additionally, there is the issue of accuracy. If data is incorrect or outdated, it can lead to the wrong conclusions and poor decision making. This is especially critical in sectors such as healthcare, as accurate and up-to-date information is vital for the safety and care of the public.

Regulations and Rights Regarding Data Sharing

To ensure data sharing complies with UK regulations, organisations must adhere to the General Data Protection Regulation (GDPR) and the Data Protection Act 2018. These regulations ensure that personal data must be processed lawfully, fairly and transparently. Organisations must have a legitimate reason for sharing data and ensure that the sharing is necessary for that stated purpose. They also need to make sure appropriate security measures are in place to protect the data being shared to avoid unauthorised access such as cyber-attacks.

Individuals also have the right to know if their data is being shared and who with. Organisations are required to inform individuals about the purposes of data sharing, the types of data involved, and the recipients of the data. This information is typically provided through a privacy policy, or it can be requested directly from the organisation through a Subject Access Request.

If an organisation shares data without being transparent, or lacks a legitimate reason, individuals have the right under UK law to protect their personal information. GDPR and the Data Protection Act help to provide processes for individuals to address the issues.

Individuals have the right to lodge a complaint with the Information Commissioner’s Office (ICO), the UK’s data protection authority. The ICO investigates complaints and can take action against organisations that fail to comply with data protection laws. Additionally, individuals can request that those organisations stop processing their data through the “’right to object’ if they can’t demonstrate legitimate grounds for sharing. Individuals can also request the ‘right to be forgotten.’ This means that they can ask the organisation to delete their personal data if it has been shared without legitimate reason or without proper consent.

Misuse of Data

If individuals suffer harm due to the misuse of their data, they have the right to seek compensation. Misuse of data can include sharing without consent, using it for purposes other than those initially stated, or failure to safeguard data leading to data breaches and cyber-attacks.

When data is misused, it breaches the trust between individuals and the organisation. It can lead to situations where personal information is exposed to unauthorised parties and used in ways that the individual did not agree to, such as receiving unsolicited marketing, or having their data sold to other companies.

More seriously, the misuse of data can result in breaches where sensitive information is accessed by authorised parties, leading to anything from unsolicited marketing to identity theft, financial loss and other forms of exploitation including blackmail. The aftermath of a breach includes not only the financial burden if a loss occurs, but also the long-term concerns around personal security and privacy.

I believe my data was involved in a Data Breach – How do I claim compensation?

If you are a victim of a data breach, you may be eligible to claim compensation. This includes both “material damage” (e.g. you have lost money) or “non-material damage” (e.g. you have suffered distress).

Court proceedings can be costly and, without the correct legal advice, a claimant’s chances of success could be significantly lower than those working with legal experts. Barings Law is currently taking on multiple data breach claims against organisations that have been hacked, or those who have sold data to third-party companies.

If your data has been stolen or sold, we will act on your behalf on a no-win no-fee basis.

All you need to do is click the button at the bottom of this article and fill in a quick form. From there our legal experts will assess your case to see if you have a valid claim, they will then contact you to get the ball rolling.