The General Data Protection Regulation (GDPR) stands as the primary legislation in Europe, significantly influencing all personal data processing activities. This regulation has brought about substantial changes for companies, including the imposition of monetary fines of up to 4% of global turnover or 20 million Euros. Additionally, it has extended rights to data subjects, such as the “right to be forgotten” claims. In this evolving landscape, where privacy is prioritised by design, the central principle is to offer owners greater control over their personal data.
Explicit consent serves as the primary requirement for data processing, while “legitimate interest” stands as one of the exceptions, serving as the most flexible lawful basis for processing. Given its flexibility and sensitivity, we handle this aspect with utmost care. We closely monitor related European governmental and independent regulatory bodies, meticulously aligning our operations with their principles and guidelines.
So, What is Legitimate Interest?
So, what exactly constitutes legitimate interest? An interest can be deemed legitimate as long as the controller can pursue it in a manner that complies with data protection and other laws. This concept has been defined in both Article 6(1)(f) of the GDPR and its Recital 47. Particularly, marketing purposes are explicitly acknowledged as legitimate in Recital 47, stating, “…The processing of personal data for direct marketing purposes may be regarded as carried out for a legitimate interest.”
However, it’s crucial to note that not all processing for marketing purposes automatically qualifies as lawful on this basis. It’s essential to demonstrate that your processing satisfies the necessity and balancing tests. When conducting the balancing test, factors such as individuals’ expectations regarding the use of their details, the potential nuisance of unwanted marketing messages, and the impact of communication methods on vulnerable individuals, such as children, should be considered.
- Given that individuals have the absolute right to object to direct marketing under Article 21(2), passing the balancing test becomes more challenging if individuals are not given a clear option to opt out of direct marketing at the point of data collection or in the initial communication.
- Legitimate interests can encompass a variety of interests, including commercial interests, individual interests, or broader societal benefits. However, it’s essential to strike a balance between your interests and those of the individual. If the processing would not be reasonably expected by the individual or if it would cause unjustified harm, the individual’s interests are likely to override your legitimate interests.
- Can legitimate interest be used for business-to-business (B2B) contacts? Absolutely. This type of processing can also be lawful based on legitimate interests, provided you conduct the three-part Legitimate Interest Assessment test. This assessment involves identifying the specific interest underlying the processing, ensuring the processing is necessary for that purpose, and considering the balancing test.
For more detailed information on the legitimate interest principle and its assessment test, along with related documentation that we strictly adhere to in our business operations, please visit https://dma.org.uk/uploads/misc/59ca0f2e17ef3-dpn-li-guidance-publication_59ca0f2e17e5a.pdf the provided link or feel free to reach out to us via email.
Can We Use Legitimate Interest for Business to Contacts?
The 3-Part Legitimate Interest Assessment (LIA) Test, as outlined by the ICO, DMA, and related regulatory bodies’ guidelines, is crucial for demonstrating compliance if required. This assessment involves three elements: identifying a legitimate interest, demonstrating that the processing is necessary to achieve it, and balancing it against the individual’s interests, rights, and freedoms.
In light of this three-part test, we have implemented a thorough LIA to justify our legitimate interests and consistently update it in line with our operations.
We are fully committed to GDPR compliance and take the following measures to ensure adherence:
We Are Fully GDPR Compliant and To Stay Like This We…
- Confirming legitimate interests as the most appropriate basis.
- Recognising our responsibility to safeguard the individual’s interests.
- Conducting a legitimate interests assessment (LIA) and maintaining a record of it to justify our decision.
- Identifying relevant legitimate interests.
- Ensuring that processing is necessary and that there is no less intrusive way to achieve the same result.
- Conducting a balancing test and ensuring that the individual’s interests do not override legitimate interests.
- Using individuals’ data only in ways they would reasonably expect, unless there is a very good reason.
- Avoiding the use of people’s data in intrusive ways or ways that could cause harm, unless there is a very good reason.
- Refraining from processing special category and children’s data.
- Considering safeguards to minimize impact where possible.
- Encouraging our clients to provide an “opt-out” option.
- Regularly reviewing our LIA and repeating it if circumstances change.
- Including information about our legitimate interests in our privacy information and terms of use.