Legal ground for data processing under GDPR: Understanding the six lawful bases
The General Data Protection Regulation (GDPR) requires organizations to establish the legal ground (or legal basis) for processing personal data. This means that before collecting, storing, or using personal data, a data controller must determine which of the six GDPR-approved legal bases applies.
The applicable legal basis depends on the type of personal data and the purpose of processing. Organizations that process data without a valid legal ground risk GDPR violations and regulatory penalties.
What are the six legal grounds for processing personal data under GDPR?
GDPR defines six lawful grounds for personal data processing:
1. Consent – The individual gives explicit permission
- Must be freely given, specific, informed, and unambiguous.
- Data subjects must be able to withdraw consent at any time.
- Common for marketing, cookies, and optional data collection.
2. Contractual necessity – Required for contract performance
- Processing is necessary to fulfill a contract with the individual.
- Used for employment contracts, service agreements, and transactions.
3. Legal obligation – Compliance with the law
- Organizations must process data to meet legal requirements.
- Examples include tax reporting, employment laws, and regulatory compliance.
4. Vital interest – Protecting life and safety
- Used in medical emergencies or cases where processing is essential to protect someone’s life.
- Often applies to healthcare, emergency services, and disaster response.
5. Public interest – Processing for official authority or public duty
- Applies to governmental and public sector activities.
- Examples include census data, public safety measures, and legal investigations.
6. Legitimate interest – Balancing business needs with data subject rights
- Organizations can process data if they have a legitimate reason, provided it does not override individual rights.
- Common in fraud prevention, network security, and direct marketing.
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How to determine the correct legal ground for data processing
Organizations must choose a legal ground before collecting and processing personal data.
1. Identify the purpose of data processing
- Define why personal data is being collected and how it will be used.
- Ensure that the purpose aligns with one of the six legal grounds.
2. Document the legal basis in privacy policies
- Clearly state the lawful ground for processing data in privacy notices.
- Provide transparent information to data subjects about their rights.
3. Ensure compliance with GDPR accountability requirements
- Keep records of processing activities (ROPA) to justify legal grounds.
- Regularly review and update data processing policies.
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Why legal grounds for data processing matter under GDPR
Ensuring a valid legal ground for processing personal data helps organizations:
- Avoid GDPR fines by ensuring lawful data processing.
- Enhance transparency and accountability in data collection.
- Protect data subject rights while balancing business operations.
- Improve data security by implementing structured compliance measures.
By choosing the correct legal ground for processing, businesses can protect privacy, comply with GDPR, and maintain trust with customers and stakeholders.