Inviting a distribution list (distro list) to a Datasite project is discouraged due to the following reasons:

 

 

1. Lack of individual accountability
   Data rooms track user activity for auditing. A distro list hides individual actions making it hard to determine who accessed what. 
2. Security risks
   Distro lists may include outdated or unintended recipients which risks unauthorized access to sensitive data. 
3. Access control issues
   Data rooms have granular permissions. Applying these to a distro list can lead to improper access levels. 
4. Compliance and confidentiality concerns
   Regulations require precise access logs. Distro lists can violate these by not identifying individual users. 
5. Audit and reporting limitations
   Analytics reports are less useful when actions are done by a group instead of specific users.

 

Best Practice is to always invite individual users with named accounts to ensure accountability, security, and compliance.