A study released Monday by the privacy-focused Ponemon Institute and funded by e-mail marketing firm Strongmail reveals a disturbing disconnect in companies between the executives tasked with protecting customer data and marketing departments, which use the data for advertising purposes or share it with third parties.

In response to a survey answered by 500 privacy and 900 marketing executives in industries ranging from health care to financial services, more than a third of marketing execs said they don't place any limits on the data they share with third parties, such as e-mail marketing agencies or online advertisers. By contrast, 75% of privacy officers believe that their companies limit the sharing of customer data.
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Keep your customers informed of the situation. Whether it's a blog, IM, or even phone calls keeping everyone in the loop build customer confidence. Not knowing is often the biggest problem. Honesty is the best policy. Covering up data disasters will lead to mistrust.