third party disclosure
Definition
Third party disclosure happens when a person or business shares private or confidential information about someone with an outside party who is not directly involved in the original relationship or agreement. This often comes up in business when you share customer data, employee records, or confidential business details with vendors, partners, or other outside organizations.
Example
If you hire a payroll company to manage your employee wages, you are disclosing your employees' personal and financial information to that third party, which may trigger legal obligations depending on your industry.
Watch Out
Many privacy laws and contracts require you to notify customers or get their permission before sharing their information with outside parties, so sharing data without checking your legal obligations first can expose you to serious fines and lawsuits.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.