Data, Privacy & Compliance

Lesson 2 of 6

Lesson 2 — The Seven Principles and Lawful Basis

Why a company can't just collect data 'because it might be useful one day'.

🟡 Intermediate 80 XP

Learn it

GDPR has seven principles: lawfulness/fairness/transparency, purpose limitation, data minimisation, accuracy, storage limitation, integrity & confidentiality, and accountability.

Before collecting anything, a company must pick a lawful basis: consent, contract, legal obligation, vital interests, public task or legitimate interests.

Consent must be freely given, specific, informed and easy to withdraw — pre-ticked boxes don't count.

Key terms

Lawful basis
The legal justification for processing personal data (one of six).
Purpose limitation
Using data only for the purpose it was collected for.
Data minimisation
Collecting only what is genuinely necessary.
Controller
The organisation that decides why and how data is processed.
Processor
A third party processing data on the controller's instructions.
ROPA
Record of Processing Activities — the written inventory of what you process and why.

Pick the lawful basis

Same company, four different processing activities.

  1. 1Payroll: Legal obligation — tax law requires the employer to report salary data.
  2. 2Delivering an order: Contract — you cannot ship a parcel without the address.
  3. 3Marketing newsletter: Consent — opt-in, with a working unsubscribe link.
  4. 4Fraud detection: Legitimate interests — but only after a documented balancing test.

A minimised signup form

json{
  "collect": ["email", "password_hash"],
  "optional": ["display_name"],
  "rejected": ["date_of_birth", "phone", "home_address", "gender"],
  "purpose": "account creation and login",
  "lawful_basis": "contract",
  "retention": "until account deletion + 30 days"
}

Each field must earn its place. If you cannot name the purpose and basis for a field, remove it.

Try it

Match each scenario to its most appropriate lawful basis.

Sending an ordered parcel
Reporting salaries to the tax office
Marketing emails to shoppers
Sharing a casualty's blood type in A&E
Blocking fraudulent logins

Challenge

A school app asks every student for full name, home address, date of birth, phone, parent email, favourite football team and a photo. Rewrite the form applying data minimisation and give a lawful basis and retention period for each field you keep.

Pick whichever way suits you — every mode earns the same bonus XP.

Write at least 40 more characters to submit.

Mark your own work

Guided walkthrough — 0/3 clues revealed

  1. Clue 1 locked — reveal it only if you get stuck.
  2. Clue 2 locked — reveal it only if you get stuck.
  3. Clue 3 locked — reveal it only if you get stuck.

Each clue costs 4 XP (never below 20 XP). You'd earn 40 XP right now.

Quiz time

Question 1 of 4Score 0

Which is NOT a GDPR principle?