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

Zane Ltd collects customers' personal data for its loyalty scheme. Under typical data protection legislation, which of the following is Zane Ltd required to do?

Zane Ltd must use personal data only for specified, lawful purposes and keep it secure. Data protection law does not allow free sale of the data to third parties or indefinite retention without a justified reason.

  1. AUse the data only for specified, lawful purposes and keep it secureCorrect
  2. BSell the data to any third party that offers a fair price
  3. CKeep all personal data indefinitely in case it is useful later

Explanation

Data protection principles require personal data to be processed lawfully for specified purposes and held securely. Selling it freely or keeping it indefinitely conflicts with purpose limitation and storage limitation principles.

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