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Glossary
InsuranceFinanceHealthcareEmployment LawPrivacy

Data Minimization

Data minimization is the practice of limiting the collection, storage, and usage of personal data to only what is necessary for a specific purpose.

Example #1

An online retailer only asks for a customer's name, email, and address during checkout, rather than requesting additional irrelevant information like phone number or marital status.

Example #2

A healthcare provider only retains patient records for the period required by law and securely disposes of them once the retention period ends.

Misuse

Misusing data by collecting more information than needed can lead to privacy violations and increase the risk of data breaches. For example, a social media company requesting access to users' location information without a clear reason could result in tracking individuals without their knowledge or consent. It's crucial to protect against such practices to safeguard consumer privacy and prevent unauthorized use of personal data.

Benefits

Data minimization helps reduce the risk of data breaches, enhances privacy protection, and promotes trust between businesses and consumers. For instance, a financial institution implementing data minimization practices ensures that only essential customer information is stored, minimizing the impact of a potential breach and increasing overall data security.

Conclusion

Data minimization is a key principle in safeguarding personal information, ensuring that only necessary data is collected and stored. By prioritizing minimal data collection and retention, organizations can enhance privacy, security, and build consumer trust.

Related Terms

Personal DataData ProtectionPrivacy By Design

See Also

Information Lifecycle Management

Last Modified: 4/30/2024
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