Which of the following best describes 'confidential data'?

The choice indicating that 'confidential data' is subject to privacy laws and regulations is correct because confidential data typically encompasses personal information that is protected by laws such as HIPAA or FERPA. These laws are designed to safeguard sensitive information from unauthorized access and misuse. For example, under HIPAA, medical records and health information are considered confidential and are protected from being disclosed without permission. Similarly, FERPA protects the educational records of students.

This definition aligns with the need for strict controls and limited access surrounding confidential data to prevent breaches of privacy and ensure compliance with legal standards. Data that can be freely shared (the first option) does not fit the definition of confidentiality, nor does data pertaining only to public figures (the third option), as that data may still require protection depending on context. Lastly, outdated or irrelevant data (the fourth option) does not necessarily carry confidentiality as a characteristic; instead, it implies obsolescence rather than a need for protection. Thus, the option that highlights the relevance of privacy laws and regulations captures the essence of what constitutes confidential data.