Explanation
The best way to address privacy concerns when an organization captures personal data from a third party through an open application programming interface (API) is to obtain consent from the data subjects. Consent is a freely given, specific, informed, and unambiguous indication of the data subject's wishes by which they agree to the processing of their personal data by the organization for a defined purpose. Consent is one of the legal bases for processing personal data under various privacy laws and regulations such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA). Obtaining consent from the data subjects can help ensure that they are aware of and agree to the collection and use of their personal data by the organization through the open API. Obtaining consent can also help respect the data subject's rights and preferences regarding their personal data.
Developing a service level agreement (SLA) with the third party, implementing encryption for the data transmission, or reviewing the specification document of the open API are also good practices for addressing privacy concerns when using an open API to capture personal data from a third party, but they are not the best way. Developing an SLA with the third party can help define the roles, responsibilities, expectations, and obligations of both parties regarding the provision and use of the open API and the personal data involved.
Implementing encryption for the data transmission can help protect the confidentiality, integrity, and availability of the personal data transferred between the third party and the organization through the open API.
Reviewing the specification document of the open API can help understand the functionality, features, parameters, or requirements of the open API and how it handles personal data.
References: Open APIs and Security Risks | Govenda Board Portal Software, The top API security risks and how to mitigate them - Appinventiv, Critical API security risks: 10 best practices | TechBeacon