When running a website or mobile app, it's common to use third-party services such as analytics providers, advertising networks, or payment processors. A third-party disclosure informs your users about which external companies may access or process their data. In this article, we'll explain exactly what a third-party disclosure is, whether it's required by law, why it's important for transparency, and how you can create one for free using our tool.
What Is a Third-Party Disclosure?
A third-party disclosure is a section within your website's privacy policy or legal documentation that lists external entities (third parties) with whom you share user data. These may include:
- Email marketing services
- Analytics providers (like Google Analytics)
- Ad networks (like Google AdSense or Facebook Ads)
- Payment gateways (like Stripe or PayPal)
This disclosure helps users understand who might access their information beyond your organization.
Why It Matters
Transparency about third-party relationships builds trust and compliance. According to a 2023 Pew Research study, 79% of internet users expressed concern about how companies share their personal data with third parties.
Top User Concerns
| Concern | Percentage of Users |
|---|---|
| Data shared without consent | 61% |
| Lack of transparency on third parties | 52% |
| Inadequate data protection by third parties | 48% |
Is It Required by Law?
Whether or not a third-party disclosure is legally required depends on your jurisdiction and user base. Some major regulations that mandate or strongly encourage this include:
- GDPR (EU): Requires disclosure of all data recipients.
- CCPA (California): Mandates informing users about data sharing and gives them the right to opt-out.
- PIPEDA (Canada): Requires consent before sharing with third parties.
Even if not legally mandated in your country, including a third-party disclosure is considered a best practice for ethical data handling.
What to Include in a Third-Party Disclosure
A clear and thorough third-party disclosure should mention:
- Names or categories of third parties
- Purpose of data sharing
- Types of data shared
- How users can opt-out or manage preferences
How to Create a Disclosure Easily
If you’re unsure where to start, our free Third-Party Disclosure Generator can help you draft a professional disclosure in minutes. You simply fill in a few details about your services and integrations, and the tool creates a downloadable and copy-ready policy tailored to your needs.
- Go to the Free Third-Party Disclosure Generator.
- Enter your website or app name and list of third-party services.
- Download or copy your custom disclosure text.
Conclusion
Whether required by law or not, a third-party disclosure is essential for operating transparently and legally. It shows your users that you take privacy seriously and keeps your site or app aligned with global data protection standards. Use our free generator to quickly set up your own disclosure and strengthen your privacy practices.
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Need help creating a GDPR-compliant privacy policy? Use our free Privacy Policy Generator to create a comprehensive privacy policy that meets GDPR requirements.