Financial Interest as a Justification for Processing Personal Data
Introduction
The processing of personal data is a complex and highly regulated area of law. One of the most important considerations when processing personal data is the justification for doing so. One possible justification is financial interest.
What is Financial Interest?
Financial interest is a legal concept that refers to a person's or organization's economic stake in a particular matter. In the context of personal data processing, financial interest can be used to justify the processing of personal data if it is necessary for the person or organization to pursue its legitimate financial interests.
Legitimate Financial Interests
The European Union's General Data Protection Regulation (GDPR) defines legitimate financial interests as "the interests of the data controller or a third party which are not overridden by the interests or fundamental rights and freedoms of the data subject which require protection of personal data".
Some examples of legitimate financial interests include:
- Preventing fraud and money laundering
- Credit scoring and lending
- Insurance underwriting
- Marketing and advertising
Balancing Test
When determining whether financial interest is a sufficient justification for processing personal data, a balancing test must be carried out. This test involves weighing the legitimate financial interests of the data controller or third party against the interests and fundamental rights and freedoms of the data subject.
The following factors should be considered when carrying out the balancing test:
- The nature and sensitivity of the personal data being processed
- The purpose of the processing
- The potential impact of the processing on the data subject
- The safeguards in place to protect the personal data
Conclusion
Financial interest can be a valid justification for processing personal data, but it is important to remember that it is not an absolute right. A balancing test must be carried out to determine whether the legitimate financial interests of the data controller or third party outweigh the interests and fundamental rights and freedoms of the data subject.
