Personal information: Overview, definition and example
What is personal information?
Personal information refers to any data that can be used to identify an individual. This includes details like names, addresses, phone numbers, email addresses, social security numbers, and any other information that could be linked to a specific person. In business contexts, personal information is often collected, stored, and processed, especially when dealing with customers, employees, or partners.
Why is personal information important?
Personal information is important because it is sensitive and requires protection. Businesses have a legal and ethical responsibility to safeguard this data, ensuring it is not misused, lost, or stolen. Protecting personal information helps build trust with customers, employees, and partners, and compliance with data protection laws is critical to avoid legal penalties and reputational damage.
Understanding personal information through an example
Imagine a business collecting contact details from potential customers on its website. This includes names, email addresses, and phone numbers. This data is considered personal information because it can be used to identify those individuals.
For example, an online store that collects a customer’s name, shipping address, and payment details in order to process an order is handling personal information. The store must ensure this information is securely stored and only used for legitimate business purposes, such as fulfilling the order.
An example of a personal information clause
Here’s how a personal information clause might appear in a contract:
“The Company agrees to collect, process, and store Personal Information solely for the purpose of providing the services outlined in this Agreement. The Company will take reasonable steps to protect such information from unauthorized access, disclosure, or misuse in accordance with applicable data protection laws.”
Conclusion
Personal information is crucial in business transactions, but it must be handled with care. Whether you're collecting data from customers, employees, or others, protecting their personal information is essential for legal compliance and maintaining trust. Understanding the importance of personal information ensures your business operates responsibly and avoids the risks associated with data breaches or misuse.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.