What is a key characteristic of confidential data?

A key characteristic of confidential data is that it is protected by privacy laws. These laws, such as the Family Educational Rights and Privacy Act (FERPA) and the Health Insurance Portability and Accountability Act (HIPAA), establish strict regulations about how certain types of information must be handled. Confidential data typically includes sensitive personal information, and these legal protections are in place to ensure that such data is kept secure and accessed only by authorized individuals. This legal framework is vital in maintaining trust and privacy for individuals whose data is collected, whether in educational settings or healthcare contexts.