The General Data Protection Regulation (GDPR) is the primary framework governing personal data processing in Europe, influencing businesses across various sectors. While it introduces considerable obligations, such as potential fines of up to 4% of global revenue or 20 million euros, it also enhances data subject rights, including the "right to be forgotten." In a rapidly evolving privacy landscape, where privacy is designed into processes, the key principle should be empowering individuals with greater control over their personal data.
Consent remains the cornerstone for data processing under GDPR, but "legitimate interest" is a notable exception and offers businesses greater flexibility for processing. Due to this flexibility, however, it requires careful consideration and adherence to relevant regulatory standards. We diligently track guidelines from European regulatory bodies and have adjusted our practices to align with their requirements.
Legitimate interest refers to situations where the data controller has a lawful reason to process personal data, provided the processing aligns with data protection laws and respects privacy. As outlined in Article 6(1)(f) and Recital 47 of the GDPR, the regulation recognizes direct marketing as a legitimate interest for processing personal data. However, this does not grant blanket permission for all types of commercial processing. It remains crucial to demonstrate that data processing is necessary and balanced, respecting both legal standards and the rights of individuals.
When evaluating whether processing is justified under legitimate interest, businesses must consider:
Moreover, under Article 21(2) of the GDPR, individuals have the right to object to marketing activities. If businesses fail to provide an easy option for individuals to opt out during data collection or initial contact, passing the balancing test becomes more challenging.
Legitimate interests can belong to the business itself or to third parties and may have commercial, personal, or societal motivations. It is essential to weigh the interests of the business against the potential harm to individuals. If individuals did not expect their data to be processed or if it could cause undue harm, their interests will likely take precedence.
Yes, legitimate interest can be applied to B2B (business-to-business) contacts, provided it meets the criteria set forth in the Legitimate Interest Assessment (LIA) framework. This requires clearly identifying the purpose for processing and ensuring that the processing is necessary to achieve that goal.
If your business passes the initial parts of the test, the final step involves the balancing test. For B2B contacts, this is often easier to justify, as business professionals typically expect their data to be processed in a commercial context, and the impact on them is less significant.
For more detailed information on the legitimate interest principle and its assessment, please refer to our guidelines here or reach out to us via email.