What does 'legitimate interests' refer to in data processing?

Study for the IAPP Certified Information Privacy Professional/Europe Exam. Use flashcards and multiple choice questions for effective preparation, with detailed hints and explanations. Get ready to boost your career in data privacy!

'Legitimate interests' in data processing refers to a legal basis under the General Data Protection Regulation (GDPR) that allows organizations to process personal data when the processing is necessary for the purposes of legitimate interests pursued by the data controller or a third party, provided that those interests are not overridden by the fundamental rights and freedoms of the data subject.

The concept emphasizes a balance between the organization's interests and the rights of the individuals whose data is being processed. If the legitimate interests of the organization outweigh the privacy concerns of the data subject, then processing can be deemed lawful. This condition underlines the idea that while the organization may have a valid reason to process data, it must still take into consideration the rights of individuals.

Other options do not accurately capture the essence of legitimate interests as defined by GDPR. For instance, interests of stakeholders in product development do not specifically relate to the legal framework concerning data processing for individual rights. Similarly, interests solely related to financial gain overlook the important aspect of the necessity for the processing to be balanced with individual rights. Lastly, while customer satisfaction surveys might fit within the scope of legitimate interests in some circumstances, they do not define or encapsulate what 'legitimate interests' means in the broader context of data processing under GDPR.

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