De-identified data: Overview, definition, and example
What is de-identified data?
De-identified data refers to data that has been processed in such a way that it no longer contains any personally identifiable information (PII) that could be used to identify an individual. De-identification typically involves removing or anonymizing specific identifiers such as names, addresses, Social Security numbers, and other direct or indirect information that could link the data back to a specific person. The goal is to make the data privacy-compliant, ensuring that individuals' identities are protected while still allowing the data to be useful for analysis, research, or statistical purposes.
De-identified data is commonly used in research, healthcare, marketing, and other industries where it is necessary to analyze large datasets without compromising individual privacy.
Why is de-identified data important?
De-identified data is important because it enables organizations to use and share data while safeguarding personal privacy and complying with data protection regulations, such as the Health Insurance Portability and Accountability Act (HIPAA) or the General Data Protection Regulation (GDPR). De-identification reduces the risks of privacy violations and potential identity theft, while still allowing organizations to gain valuable insights from the data.
For businesses and research organizations, de-identified data allows them to perform analyses and make decisions without exposing sensitive personal information. For individuals, the use of de-identified data helps ensure that their personal information remains protected while enabling the use of data for beneficial purposes such as medical research or market analysis.
Understanding de-identified data through an example
Imagine a healthcare provider wants to conduct research on the effectiveness of a new treatment. To comply with privacy regulations, the healthcare provider removes all identifying information from patient records, such as names, birthdates, and medical record numbers, leaving only relevant medical data like diagnosis, treatment types, and outcomes. The resulting dataset, which is now de-identified, can be used for research and statistical analysis without compromising patient privacy.
In another example, a marketing company may collect customer data such as purchase history and demographic information for targeted advertising. To avoid privacy concerns, the company de-identifies the data by removing names, email addresses, and other identifiable details, leaving only aggregate purchasing trends that can be used to analyze market behavior without identifying individual customers.
An example of a de-identified data clause
Here’s how a de-identified data clause might appear in a contract or privacy policy:
“The Company agrees that any data shared or utilized for research or analytical purposes will be de-identified to ensure that no personally identifiable information (PII) is disclosed or accessible. The Company will take reasonable steps to ensure that all data is anonymized by removing or obfuscating direct and indirect identifiers before being used or shared.”
Conclusion
De-identified data plays a critical role in protecting individual privacy while still allowing organizations to utilize and analyze valuable information. By removing personally identifiable information, de-identification ensures compliance with privacy laws and safeguards individuals from potential harm. For businesses and researchers, using de-identified data allows for meaningful analysis and decision-making without compromising privacy, making it a crucial tool in today’s data-driven world.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.