IAPP Certified Information Privacy Professional/Europe (CIPP/E) Practice Test 2025 - Free CIPP/E Practice Questions and Study Guide

The concept of "data minimization" refers to the principle that organizations should only collect and process personal data that is necessary for achieving a specific purpose. This principle is vital in data protection regulations, such as the General Data Protection Regulation (GDPR), which emphasizes that organizations should not gather excessive data beyond what is required.

By adhering to data minimization, businesses limit their exposure to data breaches and enhance individuals' privacy rights. They ensure that individuals' personal information is not unneededly collected or held, which helps to foster trust between the organization and data subjects.

The other options represent practices that run contrary to this important principle. Collecting all possible data for future analysis disregards the need to evaluate the necessity and relevance of data. Storing data for an unlimited period of time goes against the tenet that personal data should not be retained longer than necessary, while indiscriminately sharing data with third parties could easily compromise privacy and security, undermining the core concept of data minimization.