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ACCA Applied Knowledge · Business and Technology · Political and legal factors affecting business

A retailer collects customers' names, addresses and purchase histories through a loyalty scheme and then sells the list to a marketing firm without telling customers. Which legal requirement is most clearly at risk of being breached?

Data protection legislation is most at risk. Personal data such as names, addresses and purchase histories must be processed fairly, lawfully and for purposes customers have been told about. Selling the list to a marketing firm without informing them breaches those principles, unlike consumer, safety or dismissal rules.

  1. AData protection legislation on fair and lawful processing of personal dataCorrect
  2. BConsumer law on faulty goods
  3. CHealth and safety rules on workplace conditions
  4. DEmployment law on unfair dismissal

Explanation

Personal data must generally be processed fairly, lawfully and for stated purposes, with customers informed. Selling it on without telling them breaches these principles. Faulty goods, workplace safety and dismissal are unrelated to the facts.

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