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ACCA Applied Knowledge · Business and Technology · Financial systems and technology

A retailer holds customers' names, addresses and purchase histories. Under typical data protection principles, which action would breach the principle of purpose limitation?

Selling the data to an unrelated advertiser breaches purpose limitation. Customers supplied their details to place orders, and data must only be used for the specified purpose it was collected for, or a compatible one. Processing orders, encrypting and correcting addresses are all consistent with data protection principles.

  1. AUsing the data to process and deliver customers' orders
  2. BKeeping the data secure with encryption
  3. CSelling the data to an unrelated advertiser when customers only gave it to place ordersCorrect
  4. DCorrecting a customer's address when notified of a move

Explanation

Purpose limitation means data collected for a specified purpose must not be used in a incompatible way. Passing order data to an unrelated advertiser is a new purpose customers did not agree to. Processing orders is the original purpose, encryption supports security, and correcting addresses supports accuracy.

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