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Library management systems (LMS) are also known as integrated library systems (ILS). Libraries use them to inventory collections and manage user records. The LMS stores personal data collected from users. It also maintains records of what items users borrow, the holds they place, and bills they may incur. In addition, the LMS may share data with third parties. One reason would be to provide authentication for online resources.

Source: https://www.ala.org/advocacy/privacy/guidelines/library-management-systems
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