What is the principle of purpose limitation in data protection?

The principle of purpose limitation in data protection emphasizes that any data collected must be for specific and explicit purposes. This principle is crucial in ensuring that organizations only gather data that is necessary for their stated objectives, which helps protect individuals' privacy and control over their personal information. By clearly defining the reasons for data collection, organizations can limit the potential for misuse and ensure compliance with regulations, thereby building trust with customers and stakeholders.

The other choices reflect practices that contradict this principle; for example, storing data indefinitely or processing it without restrictions can lead to a lack of accountability and increased risk of privacy breaches. Sharing data freely among all parties fails to respect the need for consent and specificity regarding data usage, which purpose limitation seeks to protect against.