Unlocking the EU General Data Protection Regulation: A practical handbook on the EU's new data protection law: Chapter 7: Lawful basis for processing

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Overview

Why does this topic matter to organisations?

Processing of personal data is lawful only if, and to the extent that, it is permitted under EU data protection law. If the controller does not have a lawful basis for a given data processing activity (and no exemption or derogation applies) then that activity is prima facie unlawful.

What types of organisations are most affected?

The nature of an organisation's business, and the sector in which it operates, makes no difference to that organisation's obligation to comply with EU data protection law. Hence, all types of organisations are affected.

What should organisations do to prepare?

Having a lawful basis for each processing activity is critical to an organisation's ability to comply with EU data protection law. Therefore, organisations should:

  • review all of their data processing activities;
  • ensure that they have a lawful basis for each processing activity (or an exemption or derogation applies);
  • where consent is the basis for processing, review existing mechanisms for obtaining consent, to ensure that they meet the GDPR's standards (see Chapter 8); and
  • where a legitimate interest is the basis for processing, maintain records of the organisation's assessment of that legitimate interest, to show that the organisation properly considered the rights of data subjects.

Icons are used below to clarify the impact of each GDPR change. These GDPR impact icons are explained here.

Detailed analysis

Issue

The Directive

The GDPR

Impact

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Lawful basis

Under EU data protection law, there must be a lawful basis for all processing of personal data (unless an exemption or derogation applies).

blank

Rec.30; Art.7(1)

Personal data may be processed only if at least one lawful basis applies.

does not materially change

Rec.39, 40, 41; Art.6(1)

Personal may be processed only if, and to the extent that, at least one lawful basis applies.

neutral

The obligation on organisations to have a lawful basis in respect of each processing activity is essentially unchanged.

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Consent

Personal data may be processed on the basis that the data subject has consented to such processing.

blank

Rec.30, 33; Art.7(1)(a)

Processing is permitted if the data subject has consented to the processing.

materially changes

Rec.32, 42, 43; Art.6(1)(a)

Processing is permitted if the data subject has consented to the processing.

negative

"Consent" remains a lawful basis for processing personal data. However, under the GDPR, valid consent becomes significantly harder to obtain (see Chapter 8).

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Contractual necessity

Personal data may be processed on the basis that such processing is necessary in order to enter into or perform a contract with the data subject.

blank

Rec.30; Art.7(1)(b)

Processing is permitted if it is necessary for the entry into, or performance of, a contract with the data subject or in order to take steps at his or her request prior to the entry into a contract.

does not materially change

Rec.44; Art.6(1)(b)

Processing is permitted if it is necessary for the entry into, or performance of, a contract with the data subject or in order to take steps at his or her request prior to the entry into a contract.

neutral

"Contractual necessity" remains a lawful basis for processing personal data.

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Compliance with legal obligations

Personal data may be processed on the basis that the controller has a legal obligation to perform such processing.

blank

Rec.30; Art.7(1)(c)

Processing is permitted if it is necessary for compliance with a legal obligation.

does not materially change

Rec.45; Art.6(1)(c)

Processing is permitted if it is necessary for compliance with a legal obligation.

neutral

"Compliance with legal obligations" remains a lawful basis for processing personal data.

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Vital interests

Personal data may be processed on the basis that it is necessary to protect the "vital interests" of the data subject (this essentially applies in "life‑or-death" scenarios).

blank

Rec.31; Art.7(1)(d)

Processing is permitted if it is necessary in order to protect the vital interests of the data subject.

materially changes

Rec.46; Art.6(1)(d)

Processing is permitted if it is necessary in order to protect the vital interests of the data subject or of another natural person.

positive

Under the GDPR, the "vital interests" processing condition can extend to other individuals (e.g., children of the data subject). This is a helpful clarification.

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Public interest

Personal data may be processed on the basis that such processing is necessary for the performance of tasks carried out by a public authority or private organisation acting in the public interest.

blank

Rec.32; Art.7(1)(e)

Processing is permitted if it is necessary for the performance of a task carried out in the public interest or in the exercise of official authority vested in the controller.

does not materially change

Rec.45; Art.6(1)(e)

Processing is permitted if it is necessary for the performance of a task carried out in the public interest or in the exercise of official authority vested in the controller.

neutral

"Public interest" remains a lawful basis for processing personal data. Note also that processing carried out on this basis may be subject to objections from data subjects (see Chapter 9).

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Legitimate interests

Personal data may be processed on the basis that the controller has a legitimate interest in processing those data, provided that such legitimate interest is not overridden by the rights or freedoms of the affected data subjects.

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Rec.30; Art.7(1)(f)

Processing is permitted if it is necessary for the purposes of legitimate interests pursued by the controller (or by a third party to whom the data are disclosed) except where the controller's interests are overridden by the interests, rights or freedoms of the affected data subjects.

materially changes

Rec.47, 48; Art.6(1)(f)

Processing is permitted if it is necessary for the purposes of legitimate interests pursued by the controller (or by a third party), except where the controller's interests are overridden by the interests, fundamental rights or freedoms of the affected data subjects which require protection, particularly where the data subject is a child.

This does not apply to processing carried out by public authorities in the performance of their duties.

neutral

"Legitimate interests" remains a lawful basis for processing personal data. Note also that processing carried out on this basis may be subject to objections from data subjects (see Chapter 9).

 

negative

Parental permission is required to process the personal data of children (and note that a child is anyone under the age of 16). In some contexts (especially online) proving that parental permission has been obtained may be difficult.

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Additional powers for Member States

Member States are permitted to introduce additional lawful bases for limited purposes connected with national law or the performance of tasks in the public interest.

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N/A

The Directive does not explicitly address this issue.

materially changes

Rec.40; Art.6(2)

Member States may introduce additional lawful bases in relation to processing carried out for the purposes of complying with legal obligations (see Art.6(1)(c) above) or performing tasks in the public interest (see Art.6(1)(e) above).

neutral

This provision is largely intended to allow Member States to preserve certain lawful bases that exist under the national laws of the relevant Member States.

 

unknown at this stage

It is not yet clear how Member States will use this power.

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Data relating to criminal offences and civil law enforcement

Personal data relating to criminal offences are subject to additional restrictions (and are commonly treated as being analogous to Sensitive Personal Data) because of the potentially significant impact that the processing of such data can have upon the data subject .

It should be noted that the national criminal laws of Member States are outside the EU's legislative competence, and are not governed by the GDPR.

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Art.8(5)

Personal data relating to offences, criminal convictions or security measures may only be processed:

  • by an official authority; or
  • under safeguards are provided by Member State law.

Any complete register of criminal convictions may be kept only under the control of official authority.

Member States may provide that data relating to administrative sanctions or judgments in civil cases shall be processed under the control of an official authority.

does not materially change

Art.10, 23(1)(j)

Personal data relating to criminal convictions and offences or related security measures may only be processed:

  • under the control of an official authority; or
  • when permitted under EU or Member State law.

Any comprehensive register of criminal convictions may be kept only under the control of official authority.

Member States may impose restrictions on the processing of personal data for the purposes of enforcing civil law claims.

neutral

The restrictions concerning the processing of personal data relating to criminal offences or convictions, and civil law enforcement matters, do not materially change.

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Processing Sensitive Personal Data

The processing of Sensitive Personal Data is only permitted under certain conditions:

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Rec.34; Art.8

The processing of Sensitive Personal Data is prohibited, unless:

materially changes

Rec.51-56; Art.9

The processing of Sensitive Personal Data is prohibited, unless:

positive

The changes introduced by the GDPR are positive for most organisations, because they provide additional grounds on which Sensitive Personal Data may lawfully be processed.

  • Explicit consent
  • Art.8(2)(a) The data subject has given explicit consent.
  • Art.9(2)(a) The data subject has given explicit consent.
  • Employment law
  • Art.8(2)(b) The processing is necessary in the context of employment law.
  • Art.9(2)(b) The processing is necessary in the context of employment law, or laws relating to social security and social protection.
  • Vital interests
  • Art.8(2)(c) The processing is necessary to protect vital interests of the data subject (or another person) where the data subject is incapable of giving consent.
  • Art.9(2)(c) The processing is necessary to protect vital interests of the data subject (or another person) here the data subject is ncapable of giving consent.
  • Charity or not-for-profit bodies
  • Art.8(2)(d) The processing is carried out in the course of the legitimate activities of a charity or not-for-profit body, with respect to its own members, or persons with whom it has regular contact in connection with its purposes.
  • Art.9(2)(d) The processing s carried out in the course of the legitimate activities of a charity or not-for-profit body, with respect to its own members, former members, or persons with whom it has regular contact in connection with its purposes.
  • Data manifestly made public by the data subject
  • Art.8(2)(e) The processing relates to personal data which have been manifestly made public by the data subject.
  • Art.9(2)(e) The processing relates to personal data which have been manifestly made public by the data subject.
  • Legal claims
  • Art.8(2)(e) The processing is necessary for the establishment, exercise or defence of legal claims.
  • Art.9(2)(f) The processing is necessary for the establishment, exercise or defence of legal claims, or for courts acting in their judicial capacity.
  • Reasons of substantial public interest
  • N/A
  • Art.9(2)(g) The processing is necessary for reasons of substantial public interest, and occurs on the basis of a law that is, inter alia, proportionate to the aim pursued and protects the rights of data subjects.
  • Medical diagnosis and treatment
  • Art.8(3) The processing is required for the purpose of medical treatment undertaken by health professionals.
  • Art.9(2)(h), (3) The processing is required for the purpose of medical treatment undertaken by health professionals, including assessing the working capacity of employees and the management of health or social care systems and services.
  • Public health
  • N/A
  • Art.9(2)(i) The processing is necessary for reasons of public interest in the area of public health (e.g., ensuring the safety of medicinal products).
  • Historical, statistical or scientific purposes
  • N/A
  • Art.9(2)(j) The processing is necessary for archiving purposes in the public interest, for historical, scientific, research or statistical purposes, subject to appropriate safeguards.
  • Exemptions under national law
  • Subject to appropriate safeguards, Member States may, for reasons of public interest, lay down additional exemptions.
  • Art.9(4) Member States may maintain or introduce further conditions, including limitations with regard to genetic data, biometric data or health data.

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Processing for new purposes

Notwithstanding the "data minimisation principle" (see Chapter 6) there are some circumstances in which personal data may be processed for new purposes that go beyond the original purpose for which those data were collected.

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Art.6(1)(b), 13(1)

Personal data may be processed for new purposes, provided that those new purposes are "not incompatible" with the original purpose.

Member State law may permit processing for new purposes (beyond the original purpose) if this is a necessary measure to safeguard special public interests (e.g., national security, defence, public security, etc.).

materially changes

Rec.50; Art.6(4)

Where personal data are to be processed for a new purpose, the controller must consider whether the newpurpose is "compatible" with the original purpose taking into account the following factors:

  • any link between the original purpose and the new purpose;
  • the context in which the data have been collected, including the controller's relationship with the data subjects;
  • the nature of the personal data, in particular, whether Sensitive Personal Data are affected;
  • the possible consequences of the new purpose of processing for data subjects; and
  • the existence of appropriate safeguards (e.g., encryption or pseudonymisation).

negative

The Directive permits the processing of personal data for new purposes, provided that those new purposes are "not incompatible" with the original purpose. This is a reasonably low bar. However, the GDPR makes it harder for organisations to process personal data for new purposes, because the task of determining which new processing purposes are "compatible", and which are not, is an onerous one.

 

positive

The fact the GDPR recognises that pseudonymisation reduces the level of risk involved in processing personal data is a positive development for organisations that routinely process pseudonymised data (e.g., clinical trials companies).

blank

Processing not requiring identification

In some circumstances, controllers have an obligation to retain certain data for the purposes of compliance with applicable law.

blank

N/A

The Directive does not directly address this issue.

materially changes

Rec.57; Art.11(1)

If the purposes for which the controller is processing the personal data do not require the identification of the data subject, the controller is not required to maintain information identifying the data subject in order to comply with the GDPR.

positive

The GDPR helpfully clarifies the fact that controllers are not required to retain information that identifies data subjects solely for the purposes of complying with the GDPR.

Further analysis

Commentary: The "contractual performance" lawful basis

The "contractual performance" lawful basis permits the processing of personal data in two different scenarios:

  • Situations in which processing is necessary for the performance of a contract to which the data subject is a party. This may include, for example, processing the address of the data subject so that goods purchased online can be delivered, or processing credit card details in order to effect payment .
  • …Situations that take place prior to entering into a contract such as pre-contractual relations (provided that steps are taken at the request of the data subject, rather than being initiated by the controller). For example, if an individual requests information from a retailer about a particular product, the processing of that individual's personal data is permitted for the purposes of responding to that enquiry.

Commentary: The "legitimate interests" lawful basis

The "legitimate interests" lawful basis requires a balancing of the legitimate interests of the controller against the interests and fundamental rights of the data subject. To determine this balance, the controller should consider a number of factors, including:

  • …the nature and source of the legitimate interest; ……
  • whether the relevant processing activity is necessary for the exercise of a fundamental right, or is otherwise in the public interest;
  • ……the impact on the data subject;
  • ……the data subject's reasonable expectations about the processing of his or her personal data;
  • ……the nature of the data and how those data are processed;
  • ……additional safeguards that the controller can implement to limit any undue impact on the data subject (e.g., data minimisation, privacy-enhancing technologies, increased transparency, a right to opt-out, and data portability).

If, after weighing these factors, it is clear that the processing causes undue interference with the interests, rights, or freedoms of the affected data subjects, the organisation should not rely on the legitimate interests legal basis.

Commentary: The "compliance with legal obligations" lawful basis

A controller may process personal data where the controller has a legal obligation to perform such processing. However, this principle is subject to two important clarifications:

  • The legal obligation must apply to the controller, and must be binding in nature. For example, the "compliance with legal obligations" lawful basis does not apply where a governmental authority requests access to personal data, but the controller's compliance with that request is not legally mandatory. (Of course, there may be other lawful bases available to the controller, depending on the facts.)
  • …As the WP29 has pointed out on several occasions, a "legal obligation" in this context means a legal obligation arising under EU law or the laws of a Member State. A legal obligation to process personal data arising under the laws of a non-EU jurisdiction (e.g., an obligation arising under US law) does not provide a lawful basis for processing personal data.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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  • Google Analytics - For more information on Google Analytics cookies, visit www.google.com/policies. To opt-out of being tracked by Google Analytics across all websites visit http://tools.google.com/dlpage/gaoptout. This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

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