Western Governors University (WGU) ACCT3360 D217 Accounting Information Systems Practice Exam

The condition of onward transfer in the Safe Harbor Agreement indicates that only those third parties that adhere to the Safe Harbor principles are permitted to receive the shared data. This provision is crucial for ensuring that the data privacy standards established under the Safe Harbor framework are consistently upheld, even when data is passed from one entity to another.

When data is transferred, it is essential for organizations to ensure that any third parties with whom they share personal data are also committed to the same level of protection for that data. This creates a chain of responsibility and ensures that the privacy rights of individuals are maintained throughout the data sharing process. By requiring that third parties comply with the Safe Harbor principles, organizations help to safeguard sensitive information and mitigate the risks associated with data transfer and handling.

This understanding reflects the importance of maintaining ethical data practices and compliance with established privacy frameworks, emphasizing the necessity for all parties involved in data handling to adhere to defined standards of protection.