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CIPP-E · Question #168

SCENARIO Please use the following to answer the next question: Sandy recently joined Market4U, an advertising technology company founded in 2016, as their VP of Privacy and Data Governance. Through…

The correct answer is B. Conduct analysis only on pseudonymized personal data. According to the GDPR, pseudonymization is a technique that replaces or removes information in a data set that identifies an individual. Pseudonymized data can no longer be attributed to a specific data subject without the use of additional information, which is kept separately…

Compliance with European Data Protection Law

Question

SCENARIO Please use the following to answer the next question:

Sandy recently joined Market4U, an advertising technology company founded in 2016, as their VP of Privacy and Data Governance. Through her first initiative in conducting a data inventory, Sandy learned that Market4U maintains a list of 19 million global contacts that were collected throughout the course of Market4U's existence. Knowing the risk of having such a large amount of data, Sandy wanted to purge all contacts that were entered into Market4U's systems prior to May 2018, unless such contacts had a more recent interaction with Market4U content. However, Dan, the VP of Sales, informed Sandy that all of the contacts provide useful information regarding successful marketing campaigns and trends in industry verticals for Market4U's clients. Dan also informed Sandy that he had wanted to focus on gaining more customers within the sports and entertainment industry. To assist with this behavior, Market4U's marketing team decided to add several new fields to Market4U's website forms, including forms for downloading white papers, creating accounts to participate in Market4U's forum, and attending events. Such fields include birth date and salary. What is the best way that Sandy can gain the insights that Dan seeks while still minimizing risks for Market4U?

Options

  • AConduct analysis only on anonymized personal data.
  • BConduct analysis only on pseudonymized personal data.
  • CDelete all data collected prior to May 2018 after conducting the trend analysis.
  • DProcure a third party to conduct the analysis and delete the data from Market4U's systems.

How the community answered

(33 responses)
  • A
    15% (5)
  • B
    73% (24)
  • C
    9% (3)
  • D
    3% (1)

Explanation

According to the GDPR, pseudonymization is a technique that replaces or removes information in a data set that identifies an individual. Pseudonymized data can no longer be attributed to a specific data subject without the use of additional information, which is kept separately and subject to technical and organizational measures to ensure non-attribution. Pseudonymization is not a method of anonymization, which means that the data is irreversibly altered in such a way that a data subject can no longer be identified. Pseudonymized data is still considered personal data and subject to the GDPR, but it benefits from some relaxations of the rules, such as the possibility of further processing for compatible purposes, the exemption from some data subject rights, and the facilitation of data transfers. In this scenario, Market4U is an advertising technology company that collects and processes a large amount of personal data from its contacts, including sensitive data such as birth date and salary. This data can be used to gain insights into the preferences and behavior of its potential customers, as well as to identify trends and opportunities in different industry verticals. However, this data also poses significant risks for Market4U, such as data breaches, non-compliance, reputational damage, and legal liability. Therefore, Market4U needs to apply the principle of data minimization, which means that it should only collect and process the data that is necessary and relevant for its purposes, and delete the data that is no longer needed. One of the ways that Market4U can achieve data minimization is by pseudonymizing the personal data that it uses for analysis. By doing so, Market4U can reduce the risks associated with the processing of personal data, while still retaining the utility and value of the data for its purposes. Pseudonymization can also help Market4U to comply with other GDPR principles, such as purpose limitation, storage limitation, and integrity and confidentiality. Pseudonymization can also enable Market4U to rely on legitimate interests as a legal basis for the processing of personal data for analysis, as long as it conducts a balancing test and respects the rights and interests of the data subjects. Therefore, the best way that Sandy can gain the insights that Dan seeks while still minimizing risks for Market4U is to conduct analysis only on pseudonymized personal data. This option would allow Market4U to use the data for its legitimate business purposes, without compromising the privacy and security of the data subjects.

Topics

#pseudonymization#data minimization#analytics#lawful processing

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