CommerceGuard.org is the primary site of the Commerce Accountability Project (CA Project, LLC), an organization dedicated to exposing anti-competitive, anti-labor and anti-consumer practices in industry. We rely on the support of the public to continue our work. If you would like to support us, please consider donating or volunteering. You can learn more about us here.
Glossary
InsuranceFinanceHealthcareEmployment LawPrivacy

Least Amount Of Data Necessary

The principle of least amount of data necessary means that organizations should only collect, use, and store the minimum personal information required for a specific purpose.

Example #1

For example, a grocery delivery service only asks for a customer's name, address, and phone number to deliver groceries. They do not request additional data like social security number or bank details.

Example #2

Another example is an online newsletter subscription form that only requires an email address and a name, without asking for additional details like date of birth or location.

Misuse

Misuse of personal data beyond what is necessary can lead to privacy violations, identity theft, and unauthorized use of sensitive information. For instance, if a fitness app collects more data than needed, such as medical history or GPS location when not relevant, it could expose users to potential privacy breaches and targeted advertising without their consent. This misuse can erode trust between consumers and businesses, leading to reputational damage and legal repercussions.

Benefits

By adhering to the principle of least amount of data necessary, organizations can minimize the risk of data breaches, enhance consumer trust, comply with privacy regulations, and reduce storage costs. For instance, a healthcare provider that only retains patient data required for treatment purposes reduces the risk of unauthorized access to sensitive medical records, safeguarding patient confidentiality and complying with healthcare privacy laws.

Conclusion

Upholding the principle of least amount of data necessary promotes privacy protection, data security, and consumer trust in the marketplace. It empowers individuals by limiting the collection and usage of personal information to what is essential for a specific purpose, fostering a fair and transparent exchange of data.

Related Terms

Data MinimizationPersonal DataPrivacy By Design

Last Modified: 4/30/2024
Was this helpful?