Data privacy concerns continue to grow in importance for businesses across the United States, and Washington State is no exception. Like other states, Washington State has been developing its own unique legal and regulatory environment concerning data protection.
Key principles that lie at the heart of these efforts are data minimization and purpose limitation. For businesses in Seattle—home to some of the world’s most influential tech companies—understanding and adhering to these principles is essential to building and maintaining customer trust, as well as staying ahead of evolving legal requirements.
In this guide, we break down what data minimization and purpose limitation mean in the context of Washington State’s laws and regulations, how these principles are applied, and practical steps businesses can take to maintain compliance.
If you need a personalized consultation, our Seattle data privacy lawyers at By Design Law can help. Call us at (206) 922-8978 or use our online scheduling tool to get started.
What Is Data Minimization & Purpose Limitation?
Data minimization is the principle that businesses should collect only the minimum amount of personal information required to fulfill a specific purpose. In other words, if you do not need a certain piece of data in order to carry out your business function or transaction, it should not be collected.
In practice, data minimization involves:
- Assessing the necessity of each data point before collection.
- Restricting the scope of data collection to strictly what is needed.
- Regularly reviewing stored data to ensure information that is no longer required is either deleted or adequately anonymized.
Purpose limitation stipulates that personal data should only be collected for a specified, explicit, and legitimate purpose. Once data has fulfilled that purpose, it should not be used or retained for unrelated or new objectives without obtaining proper consent or establishing another lawful basis.
In Washington State, this principle means:
- Defining clear data usage objectives—from the outset—before collecting any information.
- Sticking to those objectives unless you have a valid legal basis or additional consent to expand data use.
- Avoiding ‘function creep,’ where data collected for one function ends up being used for a completely different function without clear justification.
These two concepts work hand-in-hand: collecting only what you need (data minimization) and using it only for disclosed, legitimate reasons (purpose limitation).
Washington State’s Evolving Privacy Landscape
Over the past several years, Washington legislators have introduced multiple bills aiming to establish a comprehensive data privacy law (often referred to as the “Washington Privacy Act” in its various iterations). While previous versions did not make it into law, these proposals indicate that Washington is edging closer to a robust regulatory framework akin to the CCPA or GDPR. In each version of these proposals, data minimization and purpose limitation have consistently appeared as essential requirements for businesses that collect and use consumer data.
My Health My Data Act
One piece of legislation that passed in Washington in April 2023 is the My Health My Data Act (HB 1155), which focuses on health-related data, even if it is not protected under federal health privacy laws such as HIPAA. Although narrower in scope than comprehensive legislation would be, it reinforces the concept that companies handling sensitive data (particularly related to health) must comply with strict limitations around collection, use, and disclosure.
Other Relevant Laws & Enforcement
Even in the absence of a sweeping, single privacy law, Washington State’s existing consumer protection laws, data breach notification statutes, and biometrics privacy laws can apply. The Washington Attorney General (AG) also works in tandem with federal authorities such as the Federal Trade Commission (FTC). The AG can bring enforcement actions against deceptive or unfair practices, which can include mishandling of personal data or misrepresenting data collection practices.
Key Obligations for Businesses in Washington State
If you operate a business in Seattle or otherwise serve Washington residents, you should be mindful of the following obligations that reflect data minimization and purpose limitation principles—even if not (yet) explicitly spelled out in a single comprehensive state privacy law:
- Obtain clear consent: Make sure your privacy policies and data collection notices are understandable and transparent. Also, specifically disclose any sensitive categories of personal data you collect and the purposes for which you collect them.
- Collect only the data you need: Review each field in your online forms, apps, and internal systems. Ask whether each requested piece of data is essential to the provision of your product or service.
- Use data only for disclosed purposes: You need to clearly define each purpose for which data is collected. Prohibit internal teams from using this data for unrelated projects without additional consent or legal basis.
- Implement retention limits: Set policies that define how long data is kept. And then permanently delete or de-identify data that is no longer needed.
- Secure your data: Do not forget to use administrative, technical, and physical safeguards to protect data. Regularly assess the risk of unauthorized access, considering the volume and sensitivity of stored information.
- Prepare for enforcement: Stay aware of enforcement trends from the Washington AG and the FTC. Maintain thorough documentation of your data practices to demonstrate compliance if investigated.
Remember: When adopted in tandem, data minimization and purpose limitation can foster deeper trust and long-term customer loyalty.
We Can Help Your Business Stay Compliant with Data Minimization & Purpose Limitation Laws in Washington State
Whether you’re a budding startup or an established enterprise, By Design Law is ready to partner with you to help you uphold data minimization and purpose limitation principles. Remember: protecting consumer data is not just a matter of legal compliance—it’s key to fostering trust in your brand and securing your company’s reputation in a competitive market.
Contact By Design Law today to schedule a consultation and let us guide you through every aspect of privacy law, offering clear, actionable advice so you can focus on what you do best: growing your business. Call today at (206) 944-6584 or use our online scheduling tool to get started.
