Blog

How Websites Use and Share Your Data: What You Need to Know

Written by Jeff | Jun 30, 2025 5:00:00 PM

Websites collect and use user data for a variety of reasons—most commonly to personalize content, display targeted advertisements, and enhance user experience. This data ranges from general technical details like browser type and IP address to sensitive information such as names, email addresses, and payment details.

Understanding how websites collect, use, and share this data is essential for maintaining digital privacy. In this article, we’ll explain the process of data collection, how sharing works, best practices for websites, and how users can protect their information online.

What Is Data Collection on Websites?

Website data collection involves gathering information about visitors and their online behavior. This data is typically collected through cookies, tracking pixels, user interactions, and form submissions.

Types of Data Collected

  • First-party data: Information collected directly by the website you visit, such as browsing history, purchases, or login details.

  • Third-party data: Information collected by external services (like ad networks) embedded on the site, which may include demographic data or interests gathered from multiple websites.

Why Websites Collect Data

  • To personalize user experiences

  • To serve targeted advertisements

  • To analyze user behavior and improve site functionality

While data collection helps businesses improve their services, it raises serious questions about user privacy, consent, and data protection. Informed users are more likely to trust platforms that are transparent about their practices.

How Does Data Sharing Work?

Data sharing involves distributing user data to third parties, such as advertisers, analytics providers, or partner organizations. This can support business operations but also introduces security and compliance risks if not managed carefully.

Common Data Sharing Methods

  • APIs (Application Programming Interfaces): Allow systems to communicate and exchange data in real time.

  • FTP and Cloud Services: Used for transferring and storing files in a centralized location for shared access.

Challenges in Data Sharing

  • Security Risks: Unsecured data transfers can be intercepted or misused.

  • Compliance Requirements: Laws like GDPR and CCPA require explicit user consent and strict transparency.

  • Ethical Considerations: Companies must ensure data is only used for its intended purpose and that user rights are respected.

Without proper controls, data sharing can lead to unauthorized use, loss of trust, and regulatory penalties.

How Should Websites Manage User Data?

Managing user data responsibly is essential for both user trust and regulatory compliance. Effective data management limits unnecessary data collection and ensures that stored data is protected from breaches or misuse.

Best Practices for Data Management

  • Transparency and Consent
    Clearly explain what data is collected and why. Offer easy opt-in and opt-out choices and provide access to user data on request.

  • Data Minimization
    Collect only the data necessary to provide services. This reduces exposure and simplifies compliance efforts.

  • Secure Storage and Encryption
    Encrypt data at rest and during transmission. Conduct regular security audits and ensure systems are updated to patch vulnerabilities.

  • User Control and Accessibility
    Give users the ability to manage, update, or delete their personal data. A user-centric approach helps build long-term trust.

Responsible data management is not just a legal requirement—it’s also a competitive advantage in a privacy-conscious digital landscape.

Why Is Data Privacy Important?

Data privacy gives individuals control over how their personal information is collected, stored, and used. For businesses, respecting data privacy isn’t just good practice—it’s required by law in many regions.

The Role of Compliance

Laws such as GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) outline strict standards for:

  • Obtaining informed user consent

  • Securing data storage and transfers

  • Providing clear privacy notices

  • Allowing users to access or delete their data

Non-compliance can lead to substantial fines and reputational damage.

Building Trust Through Transparency

  • Be open about how user data is collected and shared

  • Provide simple tools for managing data preferences

  • Regularly update privacy policies to reflect current practices

Transparency is the cornerstone of trust in digital interactions.

How Can Users Protect Their Data?

While websites have a responsibility to manage data securely, users also play a role in protecting their own privacy. Being proactive can significantly reduce exposure to unwanted tracking or data misuse.

Tools and Habits for Online Privacy

  • Use Privacy-Focused Tools: Browsers like Brave or extensions like uBlock Origin block tracking scripts and cookies.

  • Secure Your Information: Use strong, unique passwords and consider a password manager to manage them.

  • Enable a VPN: A virtual private network can hide your IP address and encrypt your internet connection.

Stay Informed and Vigilant

  • Read privacy policies before signing up for new services

  • Regularly check account settings on websites and apps

  • Be cautious when sharing personal data on public platforms

Awareness is the first step toward protecting your digital identity.

Take Action to Protect Your Data

As technology continues to evolve, understanding how websites collect and use data is more important than ever. Both users and organizations must take responsibility for creating a safer and more transparent online environment.

If you’re unsure how to protect your data or need help developing privacy strategies for your business, we’re here to help. Our team specializes in digital privacy solutions tailored to your needs.

Contact us today to learn how you can take control of your online privacy and protect your valuable information.

About Newport Solutions

Newport Solutions has been helping small businesses in Orange County, CA for almost 20 years. Our dedicated team provides comprehensive IT services, ensuring your business operates smoothly and efficiently. From IT support to cybersecurity, we've got you covered. Discover how we can become your business's IT department today.

We proudly serve the following areas: Newport Beach, Irvine, Costa Mesa, and the greater Orange County region.

Contact Us to learn more.