GDPR legitimate interest

GDPR legitimate interest

What is the legitimate interest lawful basis for data processing?

Legitimate interest is one of the six lawful bases for processing personal data under the General Data Protection Regulation (GDPR). It refers to the processing of personal data that is necessary for the purposes of the legitimate interests pursued by the controller or by a third party, except where such interests are overridden by the interests or fundamental rights and freedoms of the data subject which require protection of personal data.

 

Legitimate interest is a flexible legal basis for processing personal data. It can be used in a wide range of circumstances, but it puts the onus on the controller to balance their legitimate interests and the necessity of processing the personal data against the interests, rights, and freedoms of the data subject.

 

To rely on legitimate interest as a legal basis for processing personal data, the controller must ensure that the processing is necessary for the purposes of the legitimate interests pursued by the controller or by a third party. The controller must also ensure that the interests or fundamental rights and freedoms of the data subject do not override the legitimate interests pursued by the controller or by a third party.

 

Legitimate interest as a lawful base is foreseen under Article 6 (f):

 

processing is necessary for the purposes of the legitimate interests pursued by the controller or by a third party, except where such interests are overridden by the interests or fundamental rights and freedoms of the data subject which require protection of personal data, in particular where the data subject is a child.

 

 

 

 

When is legitimate interests appropriate and lawful?

Legitimate interest is suitable and lawful when it meets GDPR compliance requirements:

 

• Purpose: (..processing is necessary for..)

 

• Necessity: (..the purposes of the legitimate interests pursued by the controller or by a third party..)

 

• Balance: (..except where such interests are overridden by the interests or fundamental rights and freedoms of the data subject which require protection of personal data, in particular where the data subject is a child…)

 

You must assess every aspect of the three-part test and record the results to illustrate the applicability of legitimate interests. This process is commonly referred to as a ‘legitimate interests assessment’ or LIA, although this precise terminology is not explicitly mentioned in the GDPR.

 

Once your Legitimate Interests Assessment (LIA) establishes the applicability of the legitimate interests basis, it’s imperative to conduct it prior to commencing data processing. Attempting to retrospectively apply legitimate interests after initiating data processing is not permissible. Processing data without a lawful basis constitutes unlawful activity, inevitably resulting in breaches of transparency and accountability obligations.

 

While there’s no prescribed procedure, approaching the LIA involves adhering to the three-part test mentioned above:

 

• The Purpose Test: Identify the legitimate interest.

 

• The Necessity Test: Evaluate whether the processing is necessary.

 

• The Balancing Test: Consider the individual’s interests.

 

 

 

Avoid legitimate interests as a lawful basis if:

One of the primary reasons to avoid relying solely on legitimate interests as a lawful basis is the lack of clarity and accountability it can entail. Unlike other lawful bases outlined in data protection regulations, such as consent or contractual necessity, legitimate interests can be subjective and open to interpretation. This ambiguity can lead to challenges in demonstrating compliance with regulatory requirements and may increase the risk of regulatory scrutiny or legal challenges.

 

On the other hand, Legitimate interests as a lawful basis require organizations to balance their interests against the rights and freedoms of individuals. While this balancing act is essential for ensuring fair and proportionate data processing, organizations must be mindful of the potential impact on individual rights, such as privacy and autonomy. Without careful consideration and safeguards in place, reliance on legitimate interests could result in undue intrusion into individuals’ lives and erode trust in the organization.

 

Another factor to consider is the limited scope and applicability of legitimate interests as a lawful basis. While legitimate interests may be suitable for certain types of processing activities, they may not always provide a sufficient legal basis, especially in cases where the processing involves sensitive or high-risk data. Organizations should carefully assess whether legitimate interests are appropriate for their specific circumstances and consider alternative lawful bases where necessary.

 

While legitimate interests can offer flexibility and practicality for organizations engaging in data processing activities, they should not be relied upon as the sole lawful basis. By considering the potential drawbacks and exploring alternative approaches, organizations can better protect individual rights, enhance transparency and accountability, and ensure compliance with evolving data protection regulations. Ultimately, prioritizing ethical and responsible data handling practices is essential for maintaining trust and confidence in an organization’s data processing activities.

 

 

 

Is legitimate interest appropriate for marketing purposes?

Proponents of using legitimate interest for marketing purposes argue that it offers flexibility and efficiency for businesses while still providing a level of protection for consumer data. By leveraging legitimate interest, businesses can reach their target audience more effectively, personalize marketing efforts, and drive engagement without relying solely on consent, which can be challenging to obtain and maintain.

 

However, from a regulatory standpoint, using legitimate interest for marketing purposes presents challenges in ensuring compliance with data protection regulations. Organizations must carefully assess whether their marketing activities meet the requirements of legitimate interest, including conducting a legitimate interests assessment (LIA) and maintaining documentation to demonstrate compliance. Failure to adhere to regulatory standards can lead to fines, legal repercussions, and reputational damage.

 

In the debate over the appropriateness of legitimate interest for marketing purposes, there are valid arguments on both sides. While legitimate interest offers benefits in terms of flexibility and efficiency for businesses, it also raises ethical concerns, compliance challenges, and risks to consumer trust. As businesses navigate the evolving landscape of data protection and privacy, striking a balance between business needs and consumer rights is paramount. By prioritizing transparency, accountability, and ethical data practices, organizations can build stronger relationships with consumers and foster trust in an increasingly data-driven world.

 

 

 

 

Do you need a legitimate interests assessment (LIA)?

Focus on your business and keep your compliance documents up-to-date with Seifti:

 

We provide you with GDPR consultancy and audit services, with all your data processing activities.

 

Our team will validate that your company’s current data protection policies and procedures are fully compliant.

 

Also, our experts will help you define the subject rights workflows to avoid issues with the Data Protection Authorities.

 

If you need further information, do not hesitate in contacting us!