Table of Contents
In Short
- Profiling involves using automated processing of personal data to evaluate aspects of individuals, such as their preferences, behaviour, or economic situation.
- Under the UK GDPR, profiling may have legal and ethical implications, and businesses must comply with specific rules, including transparency and the right to object.
- Seek legal advice if you’re unsure about the compliance requirements for profiling, particularly when it involves automated decision-making with significant effects.
Tips for Businesses
Before engaging in profiling, make sure you inform individuals about how their data is being used and provide the opportunity for them to object. If using special category data, ensure explicit consent is obtained. Regularly assess your profiling activities through a Data Protection Impact Assessment (DPIA) and keep data accurate and up-to-date.
Small businesses must prioritise compliance with the UK data protection regime, which includes the UK GDPR and the Data Protection Act 2018 (DPA 2018), when they process personal information. Certain business activities can create complex and significant data protection law obligations. For example, profiling involving personal data is a complex area that can create serious compliance risks. The UK GDPR defines profiling as any form of automated processing of personal data that evaluates certain personal aspects about a person. This might include their behaviour, preferences, or interests. You must carefully consider the rules around profiling under data protection law.
This article introduces some key data protection issues around profiling that your business should understand before engaging in these activities, considering the UK ICO guidance for businesses.
What is the UK GDPR?
The UK GDPR is the key law defining how your business must handle personal data. It applies to nearly all companies, as most collect or use some form of personal information.
The UK GDPR gives individuals substantial rights and places legal compliance responsibilities on your business. If you fail to meet those duties, the Information Commissioner’s Office (ICO) can issue heavy fines and take enforcement action.
Profiling is just one of the many areas covered under the UK GDPR. You must assess whether your profiling is subject to specific rules under Article 22, particularly where it is part of a solely automated decision that significantly affects individuals.
What is Profiling?
Profiling means using automated processing of personal data to evaluate aspects about someone. This can include their behaviour, preferences, economic situation, health, or movements.
Continue reading this article below the formWhat Legal Considerations Should Your Business Consider When Profiling?
The UK GDPR sets out strict rules for profiling, given it may create legal and ethical risks.
This is a complex area of compliance, and your business will need to handle data appropriately. Let us explore some common considerations below.
This factsheet sets out how your business can become GDPR compliant.
Be Clear and Transparent
You must clearly inform individuals about your profiling activities and provide additional information if profiling results in automated decision-making.
Respect the Right to Object
People have the right to object to profiling. In this case, you may need to stop processing their data unless you can demonstrate specific legal grounds under the UK GDPR allowing you to continue. If they object to profiling for direct marketing purposes, you will need to stop profiling them for direct marketing purposes.
Get Explicit Consent for Special Category Personal Data
If your profiling involves special category personal data, such as health or ethnicity, you generally need the individual’s explicit consent.
Know the Rules for Automated Decision-Making
You should also distinguish general profiling from automated decision-making with a legal or similarly significant effect. These carry stricter compliance obligations, and this activity is generally prohibited unless exceptions apply.
If you are unsure, you should take legal advice on the implications of automated decision-making, as this is a high-risk topic.
Identify a Lawful Basis
You must identify a valid reason for using personal data. If you rely on legitimate interests, you should complete an assessment to ensure that your business interests do not override people’s rights and freedoms.
Assess Risks Through a DPIA
You must conduct a Data Protection Impact Assessment if your profiling could significantly affect people’s rights.
Use Accurate and Relevant Data
You must keep your profiling data accurate, relevant, and up-to-date. If you collect data from third parties, you must check it carefully. You should collect minimal data per the data minimisation principles and delete it when you no longer need it.
While these are some examples, your profiling activities will also trigger other obligations under the UK GDPR. Profiling is complex, and the risks will vary depending on what data you use and how you make decisions. If you are unsure about your obligations, seek legal advice to understand your risks and ensure your approach is compliant.
Key Takeaways
Profiling involves the automated use of personal data to assess or categorise individuals. If your business uses profiling, you must comply with the UK GDPR rules. Depending on your activities, your company may have various complex obligations, so you should seek specialist advice from a data protection solicitor if you need support.
If you need help understanding your profiling duties, our experienced data, privacy, and IT lawyers are here to help. As part of our LegalVision membership, you can speak with a lawyer and get your documents reviewed for a low monthly fee. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Profiling means using automated tools to analyse personal data and make predictions or assessments about individuals. You might use it to evaluate behaviour, financial status, preferences, or location. However, these activities create strict compliance responsibilities under the UK GDPR.
If your business fails to comply with the UK GDPR, the ICO can investigate it, issue fines, and take other enforcement actions. You could also face reputational damage and compensation claims.
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