Legitimate Interest
What does legitimate interest mean?
Legitimate interest is one of the six lawful bases for processing personal data under regulations like the General Data Protection Regulation (GDPR). It allows a business or organization to process personal data without direct consent, as long as the purpose is necessary and does not override the rights and freedoms of the individual. It acts as a flexible legal ground, commonly used for activities such as fraud prevention, direct marketing, or improving services.
How does legitimate interest work?
When a business relies on legitimate interest, it must:
- Identify a clear purpose for the data processing that benefits the organization or a third party.
- Conduct a Legitimate Interest Assessment (LIA) to ensure the processing is necessary and balanced against individuals' rights.
- Document this assessment to demonstrate accountability.
- Inform individuals about the processing, usually via a privacy policy.
This legal basis is only valid when the data processing is expected, proportionate, and respects users’ privacy.
Legitimate interest helps organizations carry out useful business operations, such as website analytics, service optimization, or marketing, without always needing explicit user consent. However, it requires careful consideration, especially in high-risk data use cases or where children or vulnerable groups are involved. It's particularly relevant when other legal bases like consent are impractical or unnecessary.
From a compliance standpoint, using legitimate interest improperly can lead to regulatory scrutiny, penalties, and loss of trust. Organizations must be transparent and prepared to justify their decisions to regulators or consumers.
FAQs about legitimate interest
Yes, if the data processing is necessary and does not negatively impact individuals’ rights. A Legitimate Interest Assessment (LIA) is crucial.
It's a balancing test that helps determine whether the organization’s interest outweighs any risk to the individual’s privacy.
Yes, especially for direct marketing. However, individuals must always be offered an easy way to opt out.
Yes, transparency is a must. You should clearly explain the purpose in your privacy notice.
Usually not. Processing special category data often requires explicit consent or a stronger lawful basis under GDPR.