U.S. Privacy and Data Protection | Insights | Oct. 2024 (State Law)

Data minimization is a fundamental principle and growing trend in various data privacy laws, including the California Consumer Privacy Act (CCPA). But what is this concept of “data minimization” and how can businesses comply with this standard?

Understanding Data Minimization

Data minimization requires businesses to collect, use, retain, and share only the minimum amount of personal information necessary to achieve a specific purpose. This principle serves various functions, including:

• Reducing the risk of unauthorized access to personal information
• Supporting good data governance practices

Best Practices for Compliance

To ensure compliance with data minimization principles, companies should:

• Regularly review and assess data collection practices
• Implement strong data governance policies
• Train employees on data minimization principles
• Document decision-making processes for data collection and verification methods
• Stay updated on CCPA regulations and enforcement advisories

Applying Data Minimization to Consumer Privacy Requests

In a recent Enforcement Advisory, the California Privacy Protection Agency (“CPPA”) observed that some businesses are requesting excessive personal information when processing consumers' CCPA requests, which goes against the principle of data minimization.¹ To comply with data minimization principles, businesses should:

• Collect only the information necessary to fulfill the consumer's request
• Avoid requiring consumers to create accounts or provide additional information beyond what's needed to process their request
• Use existing information to verify consumer identity whenever possible

Also, when handling consumer requests, businesses should ask themselves:

• What is the minimum personal information required to achieve the purpose?
• Is additional information needed beyond what's already on file?
• What are the potential negative impacts of collecting more information?
• Can additional safeguards be implemented to address these impacts?

By adhering to these data minimization principles, businesses can reduce their risk exposure, improve data privacy and security practices, and increase compliance with the CCPA and other data privacy laws and regulations.

Kronenberger Rosenfeld, LLP regularly advises clients regarding advertising and privacy compliance. Contact our firm using our online case submission form.