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Exemption for Specific Purposes of Processing
The "Exemption for Specific Purposes of Processing" factor is used to determine the scope of applicability of data protection laws by excluding certain types of data processing activities from the law's coverage based on their purpose or nature.
Provision Examples
"CCPA Sec.1798.140 (e) in USA - California: "Business purpose" means the use of personal information for the business' operational purposes, or other notified purposes, or for the service provider or contractor's operational purposes, as defined by regulations adopted pursuant to paragraph (11) of subdivision (a) of Section 1798.185, provided that the use of personal information shall be reasonably necessary and proportionate to achieve the purpose for which the personal information was collected or processed or for another purpose that is compatible with the context in which the personal information was collected."
"LGPD Art.4(iia) in Brazil: This Law does not apply to the processing of personal data that: II – is done exclusively: a) for journalistic and artistic purposes; or"
"DPA of 2012 Sec.4(2d) in Philippines: This Act does not apply to the following: d) Personal information processed for journalistic, artistic, literary or research purposes;"
Description
The "Exemption for Specific Purposes of Processing" factor is incorporated into data protection laws to balance the need for data protection with other important societal interests and practical considerations. Lawmakers extend or limit the application of data protection laws to certain situations to ensure that the laws do not unduly interfere with legitimate activities that serve important public interests or are essential for business operations.
Commonalities across different jurisdictions include exemptions for:
- Journalistic, artistic, and literary purposes: For example, Brazil's LGPD Art.4(iia) states that the law does not apply to processing "done exclusively: a) for journalistic and artistic purposes". Similarly, the Philippines' DPA of 2012 Sec.4(2d) exempts "Personal information processed for journalistic, artistic, literary or research purposes".
- Research and statistical purposes: The Philippines' provision mentioned above includes research purposes, while Egypt's DPL Art.3(2) exempts "Personal data which is processed for the purpose of obtaining official statistical data".
- Business operational purposes: California's CCPA Sec.1798.140(e) defines "business purpose" to include various operational activities such as auditing, security, debugging, and customer service.
- Emergency contact information: Several U.S. states, including Delaware (Delaware PDPA Para.12D-103(c)(11)(b)) and Montana (MCDPA Sec.4(2)(o)(ii)), exempt emergency contact information from their data protection laws.
Different approaches to this factor include:
- Broad vs. narrow exemptions: Some jurisdictions provide broad exemptions (e.g., Philippines for journalistic, artistic, literary, and research purposes), while others are more specific (e.g., Brazil separating journalistic/artistic from academic purposes).
- Conditional exemptions: Some laws impose conditions on exemptions. For instance, Egypt's DPL Art.3(3) exempts media processing only if the data is "true and accurate, and not used for any other purpose".
- Threshold-based exemptions: Some U.S. states (e.g., Connecticut, Delaware, Montana, Oregon) exempt data processing below certain thresholds, such as the number of consumers whose data is processed.
Implications
The "Exemption for Specific Purposes of Processing" factor has significant implications for businesses and organizations:
- Media and creative industries: News organizations, artists, and writers in jurisdictions like Brazil, Philippines, and Egypt may process personal data without full compliance with data protection laws, facilitating freedom of expression and creativity.
- Research institutions: Academic and research organizations in jurisdictions like the Philippines may have more flexibility in data processing for research purposes.
- Business operations: Companies in California can process personal data for specified business purposes without triggering certain CCPA requirements, allowing for smoother operations in areas like customer service, security, and analytics.
- Emergency services: Organizations in states like Delaware and Montana can maintain emergency contact information without full compliance with data protection laws, facilitating quick responses in emergencies.
- Small businesses: In states with threshold-based exemptions (e.g., Connecticut, Delaware, Montana, Oregon), smaller businesses processing data below the specified thresholds may be exempt from full compliance, reducing their regulatory burden.
These exemptions can significantly impact how businesses operate and comply with data protection laws. For example, a news organization in Brazil can process personal data for a journalistic story without full LGPD compliance, while a large retailer in California can process customer data for fraud prevention as a "business purpose" under CCPA without triggering certain requirements. However, businesses must carefully assess whether their activities truly fall within these exemptions to avoid potential compliance issues.