opt-out
What It Means
Opt-out means users must actively take steps to prevent their personal data from being shared with third parties, rather than being asked for permission first. The default setting allows data sharing, and users have to find and use controls to stop it if they don't want their information shared.
Why Chief AI Officers Care
AI systems that rely on shared user data face significant compliance risks in jurisdictions that favor opt-in consent over opt-out mechanisms. Many privacy regulations like GDPR require explicit consent before processing personal data, making opt-out insufficient for legal compliance and potentially exposing the company to substantial fines.
Real-World Example
A recommendation engine that automatically shares user viewing habits and preferences with advertising partners unless the user navigates to privacy settings and unchecks a box labeled 'share my data with partners for personalized ads.' Most users never change this setting, so their data gets shared by default.
Common Confusion
People often confuse opt-out with opt-in, which requires users to actively agree before any data sharing occurs. Opt-out assumes consent unless the user objects, while opt-in requires explicit permission upfront.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, opt-out mechanisms are commonly used for data sharing initiatives like health information exchanges (HIEs...
Finance: In finance, opt-out mechanisms are commonly used for data sharing between affiliated companies, marketing communications...
Premium content locked
Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
NISTNational Institute of Standards and Technology
"an individual makes an active affirmative indication of choice via a user interface signaling a desire not to share their information with third parties."Source: IAPP_Privacy_Glossary
Related Terms
Discuss This Term with Your AI Assistant
Ask how "opt-out" applies to your specific use case and regulatory context.
Start Free Trial