Legitimate Interest under GDPR

Legitimate Interest under GDPR

Legitimate interest is a legal basis under the General Data Protection Regulation (GDPR) that allows organizations to process personal data without explicit consent, provided they have a valid reason, and the processing does not override the individual's rights and freedoms (Article 6(1)(f)).

Key Elements

• Legitimate interest is one of the six lawful bases for processing personal data under GDPR (Article 6).
• It is broader and more flexible than other bases because it is not tied to a specific purpose, such as contractual or legal obligations.
• Common examples include fraud prevention, network security, direct marketing, and processing employee data (Recital 47).

Three-Part Test

Organizations must satisfy a three-part test to rely on legitimate interest:

• Purpose Test: Is there a legitimate interest behind the processing? (Recital 47)
• Necessity Test: Is the processing necessary to achieve that interest? (Article 5(1)(c) – data minimization principle)
• Balancing Test: Do the rights and interests of the individual override the organization’s interests? (Article 6(1)(f) and Recital 47)

Practical Examples

• A business may rely on legitimate interest to send marketing communications to its customers if this is essential for its commercial interests and customers can reasonably expect it (Recital 47).
• Other examples include fraud detection, due diligence, and improving customer experience.

Limitations

• Legitimate interest cannot be used if there is a less intrusive way to achieve the same goal (Article 5(1)(c)).
• Organizations must ensure their interests do not override the individual's privacy rights, particularly in cases involving children or sensitive data (Article 6(1)(f) and Recital 38).

In summary, legitimate interest requires a careful, documented assessment to balance organizational needs with individual rights and ensure GDPR compliance.