Introduction of Recognised Legitimate Interests
The Act introduces ‘Recognised Legitimate Interests’ as a new legal basis for data processing, specifically allowing certain security-related activities such as fraud prevention, public safety, and national security to be considered legitimate interests by default, potentially without requiring a Legitimate Interests Assessment (LIA). The Act simplifies the process for organisations to rely on legitimate interests but, crucially, it does not eliminate the need for an LIA in all cases.
Currently, this new legal basis explicitly applies to private organisations and does not appear to extend to public authorities. This potentially excludes NHS organisations and further clarification will be needed regarding the impact on NHS-held health data.
Additionally, the Act recognises direct benefits for organisations involved in direct marketing, intra-group administrative purposes and ensuring network security by making it clearer that such processing activities may qualify under legitimate interests.
It is important to stress that the Act still requires organisations to assess whether an individual’s rights override their business interests when relying on legitimate interests for marketing. This process is known as the balancing test. This means that data controllers must evaluate the impact on individuals before using legitimate interests as a legal basis to ensure that it does not override fundamental rights and freedoms.
Finally, the Act does not override existing Privacy and Electronic Communications Regulations (PECR), which still requires consent for certain marketing channels such as email and SMS marketing. The rules for general commercial direct marketing remain unchanged, meaning that in many cases explicit consent will still be required under PECR.