CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Data Analytics
A Mumbai-based retailer collects customers' purchase histories and wants to run analytics on them. Under the data protection principle of purpose limitation, which action is correct?
The retailer should use the data only for the purposes the customer consented to and seek fresh consent for any new purpose. Purpose limitation ties processing to the stated purpose, so merely holding the data does not permit unlimited reuse.
- AUse the data for analytics only for the purposes for which the customer gave consent, and seek fresh consent for a new purposeCorrect
- BUse the data for any new analytics purpose because the data is already in the company's database
- CShare the data with any third party once the customer has made a purchase
- DRetain the data indefinitely because analytics improves with more data
Explanation
Purpose limitation means personal data may be processed only for the purpose for which consent or a lawful ground was given. A new purpose needs fresh consent or another lawful basis. Possessing the data does not authorise unlimited reuse, so the second option is wrong.
Did you get it right without looking?
One question tells you little. A timed set on Data Analytics shows your real accuracy, how long you take and where you lose marks.
More Data Analytics questions
- A company plans to run analytics on customer personal data to predict buying behaviour. Under India's Digital Personal Data Protection Act, …
- Which statement correctly distinguishes a data warehouse used for analytics from an operational transaction database?
- A listed Indian manufacturer studies its past sales records to understand why sales of one product line fell sharply in the last two quarter…
- A Pune healthcare analytics firm buys a dataset of patient records from a hospital, which it will combine with wearable-device data. Which s…
- A supermarket chain in Pune finds that customers who buy bread and butter very often also buy jam, and uses this to arrange shelves. Which d…
- A company uses analytics on employee and customer personal data to monitor insider trading risk and governance lapses. Under the Digital Per…