Question 170 - CIPP-E discussion

According to the GDPR, pseudonymization is a technique that replaces or removes information in a data set that identifies an individual.Pseudonymized data can no longer be attributed to a specific data subject without the use of additional information, which is kept separately and subject to technical and organizational measures to ensure non-attribution1.Pseudonymization is not a method of anonymization, which means that the data is irreversibly altered in such a way that a data subject can no longer be identified2.Pseudonymized data is still considered personal data and subject to the GDPR, but it benefits from some relaxations of the rules, such as the possibility of further processing for compatible purposes, the exemption from some data subject rights, and the facilitation of data transfers3.

In this scenario, Market4U is an advertising technology company that collects and processes a large amount of personal data from its contacts, including sensitive data such as birth date and salary. This data can be used to gain insights into the preferences and behavior of its potential customers, as well as to identify trends and opportunities in different industry verticals. However, this data also poses significant risks for Market4U, such as data breaches, non-compliance, reputational damage, and legal liability.Therefore, Market4U needs to apply the principle of data minimization, which means that it should only collect and process the data that is necessary and relevant for its purposes, and delete the data that is no longer needed4.

One of the ways that Market4U can achieve data minimization is by pseudonymizing the personal data that it uses for analysis. By doing so, Market4U can reduce the risks associated with the processing of personal data, while still retaining the utility and value of the data for its purposes.Pseudonymization can also help Market4U to comply with other GDPR principles, such as purpose limitation, storage limitation, and integrity and confidentiality5.Pseudonymization can also enable Market4U to rely on legitimate interests as a legal basis for the processing of personal data for analysis, as long as it conducts a balancing test and respects the rights and interests of the data subjects6.

Therefore, the best way that Sandy can gain the insights that Dan seeks while still minimizing risks for Market4U is to conduct analysis only on pseudonymized personal data. This option would allow Market4U to use the data for its legitimate business purposes, without compromising the privacy and security of the data subjects.

The other options are incorrect because:

A) Conducting analysis only on anonymized personal data would not be feasible or effective for Market4U, as anonymization is a very difficult and complex process that requires the removal or alteration of any information that can identify an individual, directly or indirectly. Anonymization may also result in the loss of accuracy, quality, and utility of the data, which would undermine the value and purpose of the analysis.Moreover, anonymization is irreversible, which means that Market4U would not be able to restore the original data if needed2.

C) Deleting all data collected prior to May 2018 after conducting the trend analysis would not be compliant with the GDPR, as it would violate the principle of storage limitation, which requires that personal data should be kept only for as long as necessary for the purposes for which it is processed. Market4U cannot justify the retention of the data for longer than needed, especially if the data is outdated, irrelevant, or excessive.Moreover, deleting the data after the analysis would not eliminate the risks associated with the processing of the data, such as data breaches or unauthorized access4.

D) Procuring a third party to conduct the analysis and delete the data from Market4U's systems would not be a good solution for Market4U, as it would involve the transfer of personal data to another data controller or processor, which would require additional safeguards and obligations under the GDPR. Market4U would still be responsible for ensuring the compliance and security of the data, and would have to enter into a data processing agreement with the third party, as well as inform and obtain the consent of the data subjects, if applicable.Furthermore, procuring a third party would entail additional costs and risks for Market4U, such as losing control and visibility over the data, or exposing the data to unauthorized or unlawful processing by the third party7.