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ACCA Applied Knowledge · Business and Technology · The impact of advances in technology

A retailer stores customer personal data. Under typical data protection principles, which of the following best describes the principle of data minimisation?

Data minimisation means an organisation should collect and hold only the personal data that is adequate, relevant and necessary for its stated purpose. Keeping data just in case it is useful later breaches the principle, and encryption is a security measure, not minimisation.

  1. APersonal data should be kept for as long as it might be useful in future
  2. BOnly personal data adequate and necessary for the stated purpose should be collected and heldCorrect
  3. CPersonal data should be encrypted whenever it is transmitted

Explanation

Data minimisation means collecting and holding only data that is adequate, relevant and limited to what is necessary for the purpose. Keeping data indefinitely contradicts it, and encryption relates to security rather than minimisation.

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