Legitimate interest assessment (LIA) is your tool for weighing your data processing as needed while respecting customers’ privacy. It’s how you weigh your company’s needs against the individual’s rights, ensuring every piece of data you work with is justified. Instead of using express consent alone, LIA lets you use your business interest – provided you audit and document its impact.
The alternative is a hard opt-in, which may limit your flexibility and impede business.
Manage data with integrity
- Over 65% of the companies using LIA report fewer compliance issues and increased customer confidence.
- Companies implementing established LIA processes have a 20% reduction in compliance penalties.
- An effectively documented LIA can enhance internal data management effectiveness by as much as 15%.
- Experts forecast that LIA adoption will increase by 15% by 2025 with rising privacy issues.
A handy message from Cindy
An ambitious, legitimate interest test changes the way you deal with data. It is more about earning trust by being intentional, justified, and respectful with each touch of your customers’ data.
Cindy frames LIA not as some tedious compliance task, but as a trust-building exercise. Her practical advice shows that thoughtful data practices simply demonstrate to customers that you care. Her real-world experience makes her guidance both grounded and comforting.
LIA empowering businesses
FinSecure, a medium-sized financial tech firm, changed its data practices by rigorously applying an LIA process. This reduced compliance violations by 20% and boosted customer confidence.
Another example is RetailHub, an e-commerce success story that adopted LIA to review its data-gathering activities. Examining its data processing activities, RetailHub discovered where its business interests were greater than privacy interests. This translated into a 25% improvement in operational efficiency and an apparent enhancement in customer satisfaction.
Balance is fruitful for a successful business
Challenge:
One of the most significant challenges in LIA is balancing your business needs and your customers’ right to privacy. Without a clear, systematic process, you will either overstep or miss valuable opportunities.
Resolution:
Invest in a formal LIA framework with regular reviews, stakeholder feedback, and updates to take into consideration changing regulations.
Reap the rewards
- Set clear criteria to assess the necessity for processing data.
- Log all processing activities and their business justification.
- Review and update your LIA framework periodically.
- Train your employees in privacy and LIA best practices.
- Incorporate LIA findings into your data strategy.
