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Purpose Limitation

What does purpose limitation mean?

Purpose limitation is a core principle in data protection laws that requires personal data to be collected for specific, explicit, and legitimate purposes. Once collected, that data must not be processed in ways that are incompatible with those initial purposes.

How does purpose limitation work?

  • Clearly defined purpose: Organizations must state why they are collecting personal data at the time of collection (e.g., for account creation, order processing, or newsletter subscription).
  • Restriction on further use: The data cannot later be used for other purposes (such as marketing or profiling) unless those purposes are compatible or the data subject gives additional consent.
  • Documentation and communication: The intended use should be documented internally and communicated transparently to data subjects, often through a privacy policy.
  • Legal basis required: Any new or extended use typically requires a lawful basis under data protection laws (e.g., consent, legal obligation, legitimate interest).

FAQs about purpose limitation

Only if that use is compatible or if the user provides clear consent.

It must assess compatibility, update policies, and potentially seek new consent.

It is a fundamental principle in most major regulations, including GDPR and LGPD.

Using medical information collected for patient care to target insurance ads without consent.

Maintain internal records, keep data use within the disclosed scope, and document consent collection.