The Legitimate Interest Impact Assessment (LIIA) has become increasingly important in U.S. privacy compliance, particularly as states adopt comprehensive privacy laws. This document is required when organizations seek to process personal data based on legitimate interests rather than explicit consent. It helps demonstrate compliance with various state privacy laws, provides documentation of decision-making processes, and establishes a framework for balancing business needs against individual privacy rights. The assessment typically includes purpose specification, necessity testing, balancing tests, and risk mitigation strategies.
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1. Purpose and Scope: Defines the purpose of processing and scope of assessment, including identification of the data controller and processing activities being evaluated
2. Data Processing Activities: Detailed description of all processing activities being assessed, including types of data, categories of data subjects, and processing purposes
3. Legitimate Interest Assessment: Three-part test evaluating: 1) Purpose test - identifying legitimate interest, 2) Necessity test - demonstrating processing is necessary, 3) Balancing test - weighing interests against individual rights
4. Risk Assessment: Comprehensive evaluation of risks to individual rights and freedoms, including privacy impacts and potential harms
5. Safeguards and Mitigations: Detailed description of technical and organizational measures implemented to protect individual rights and reduce identified risks
6. Compliance Framework: Analysis of applicable laws and regulations, including FTC Act, state privacy laws, and sector-specific requirements
1. International Transfer Assessment: Additional assessment required when data transfers outside the US are involved, including analysis of recipient country adequacy and transfer mechanisms
2. Sector-Specific Considerations: Detailed analysis of industry-specific requirements when processing regulated sector data (e.g., HIPAA, GLBA, FERPA)
3. Special Categories Assessment: Additional evaluation required when processing sensitive data categories or involving vulnerable data subjects
1. Schedule A - Data Flow Maps: Visual representations and diagrams showing how personal data flows through the organization, including third-party transfers
2. Schedule B - Risk Matrix: Detailed risk scoring framework including likelihood and impact assessments, with specific mitigation measures for each identified risk
3. Schedule C - Supporting Documentation: Collection of relevant policies, procedures, and controls referenced in the assessment, including privacy notices and consent mechanisms
4. Schedule D - Compliance Checklist: Comprehensive checklist ensuring all relevant legal and regulatory requirements are addressed in the assessment
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