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Not long ago, a company specializing in identity verification solutions within the industry experienced a serious incident. Their third-party data provider was hacked, resulting in the leak of tens of thousands of users' real-name information. Once the event broke out, users' anger instantly surged onto the company's social media. The company's response seemed powerless: "This is a third-party issue; we are also victims."
But here’s the problem — the law doesn’t buy that. When users are scammed, the first party they look for is you, not that "mysterious third party." That’s also why many founding teams who consider themselves "only responsible for technology" are hit hard by this reality.
This leads to an almost universal but rarely openly discussed issue among projects: sharing user data with third parties.
Most project terms state simply: "We may share your data with service providers." That’s it, as if responsibility also drifts away with the statement. But some projects are starting to play a different game. For example, certain Oracle-type projects explicitly mention the concept of "joint controllers" in their terms. At first glance, it seems like a pile of legal jargon, but there’s a lot to unpack here.
"Joint controllers" means: the party receiving your data isn’t just a simple service provider. They are on the same boat as the original project, jointly deciding why and how your data is processed. Legally speaking, you are bound together; neither can run away.
This is not a word game; it’s a complete reversal of responsibility logic. Once "joint controllers" is written, the project must commit to managing these third-party partners to the highest standards. What does that mean? It means you can’t just wash your hands of it. It entails review, supervision, accountability — none can be skipped.
In other words, projects that dare to include this clause are actually tying themselves up — a heavy, inescapable shackle. It may seem like a disadvantage, but from the user’s perspective, this is the true foundation of trust.