Data minimisation: Overview, definition, and example
What is data minimisation?
Data minimisation is a principle in data protection and privacy that requires organizations to collect, process, and retain only the minimum amount of personal data necessary to fulfill a specific purpose. This principle ensures that data collection practices are limited to what is strictly needed for the task at hand, reducing the risk of unnecessary exposure or misuse of personal information. The aim of data minimisation is to enhance privacy and safeguard individuals' personal data by ensuring that only relevant and adequate data is collected, stored, and used.
In practice, data minimisation involves evaluating what data is essential for a particular process or service, eliminating or anonymizing unnecessary data, and avoiding the collection of excessive or irrelevant information.
Why is data minimisation important?
Data minimisation is important because it helps protect individuals' privacy and ensures compliance with data protection regulations, such as the European Union’s General Data Protection Regulation (GDPR). By limiting the collection of personal data, organizations reduce the risk of data breaches, misuse, or unauthorized access. Data minimisation also enhances trust with customers and users, as it demonstrates a commitment to protecting their privacy and only using their data for legitimate and necessary purposes.
Additionally, minimizing the amount of personal data that an organization holds makes it easier to comply with data retention policies and data subject rights, such as the right to access, correct, or delete personal data.
Understanding data minimisation through an example
Imagine an e-commerce platform, ShopNow, that allows customers to purchase products online. When a customer creates an account, the platform asks for personal information, such as name, email address, and shipping address, which are necessary to complete the transaction and ship the products.
However, instead of asking for unnecessary information such as a customer’s age, occupation, or preferences (which are not needed for the transaction), ShopNow adheres to the principle of data minimisation and only collects the essential information required to process the order and fulfill the delivery. Additionally, ShopNow periodically reviews the data it holds to ensure it is still necessary and removes any outdated or irrelevant data.
For example, if a customer’s shipping address changes or they no longer wish to receive marketing communications, ShopNow updates or deletes the relevant data in accordance with the customer's preferences, ensuring that only relevant data is retained.
Example of a data minimisation clause
Here’s how a data minimisation clause might appear in a privacy policy or data processing agreement:
"In compliance with the principle of data minimisation, we collect only the personal data that is necessary for the provision of our services. We do not request or store any personal information beyond what is required to complete transactions and communicate with users. We regularly review our data collection practices to ensure that only the minimal amount of personal data is retained, and we will promptly delete or anonymize any data that is no longer required."
Conclusion
Data minimisation is a core principle in data protection that helps ensure personal data is handled responsibly and ethically. By limiting the collection and retention of personal data to only what is necessary for a specific purpose, organizations can enhance privacy, reduce the risk of data breaches, and build trust with their users. Understanding and implementing data minimisation practices is essential for businesses seeking to comply with data protection regulations and demonstrate a commitment to safeguarding personal information.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.