Release of information: Overview, definition, and example
What is release of information?
Release of information refers to the disclosure or sharing of confidential, personal, or business-related data with authorized individuals or entities. This process is often regulated by privacy laws, contractual agreements, or corporate policies to ensure proper handling and protection of sensitive information.
For example, in a medical setting, a patient may sign a release of information form allowing their healthcare provider to share records with an insurance company. Similarly, in a business contract, a company may grant permission to disclose financial data to auditors or regulatory agencies.
Why is release of information important?
Release of information ensures compliance with privacy laws, protects confidential data, and prevents unauthorized disclosures. Without clear guidelines, sensitive personal or business information could be misused, leading to legal and financial risks.
For businesses, a release of information clause helps define the scope, purpose, and conditions under which information can be shared. It also helps parties understand their responsibilities in handling disclosed data securely and lawfully.
Understanding release of information through an example
Imagine a university student applying for a job. The employer requests verification of the student's degree. The university requires the student to sign a release of information form, authorizing the disclosure of their academic records to the employer.
In another scenario, a company undergoing a financial audit allows its auditors access to certain internal documents. The contract includes a release of information clause stating that only specified financial records will be shared, ensuring confidentiality.
Example of a release of information clause
“The Disclosing Party may release information to the Receiving Party only as necessary for the performance of this Agreement and in compliance with applicable data protection laws. The Receiving Party shall not disclose such information to any third party without prior written consent, except as required by law.”
Conclusion
A release of information clause protects sensitive data while ensuring proper authorization for disclosure. It helps businesses and individuals manage privacy, comply with regulations, and prevent unauthorized sharing of confidential information.
By including a release of information clause in agreements, businesses can control data disclosures, maintain confidentiality, and safeguard sensitive information from misuse.
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.