What does "purpose limitation" refer to?

Purpose limitation is a fundamental principle in data protection and privacy regulations, stipulating that personal data must only be collected for specific, legitimate purposes that are clearly outlined at the time of collection. This principle is rooted in the idea of fairness and transparency, ensuring that individuals are aware of how their information will be used and that organizations do not manipulate or misuse this data beyond its intended purpose.

For instance, if a company collects email addresses for the purpose of sending newsletters, it must not use those email addresses for unrelated purposes, such as selling them to third-party advertisers, without obtaining additional consent. This principle promotes a responsible approach to data handling and aligns with legal frameworks like the General Data Protection Regulation (GDPR), which emphasizes the need for organizations to define and communicate the purposes for which they collect personal data.

Other options, while related to data privacy, focus on different aspects. Anonymizing data is about removing identifiable information, limiting user access relates to access control and data security, and restrictions on data transfers involve compliance with international data transfer regulations rather than the purpose for which data is collected. These distinctions aid in understanding the broader context of data governance while reinforcing the significance of purpose limitation in maintaining trust and compliance in data practices.