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A controller refers to the entity that determines the “purpose and means” of how personal data will be processed. Determining the “purpose” of processing refers to deciding why information will be processed. Determining the “means” of processing refers to deciding how information will be processed.1 That does not necessarily mean, however, that a controller needs to make every decision about how processing will occur. The European Data Protection Board (EDPB) distinguishes between “essential means” and “non-essential means” of processing.2 Essential means refers to those processing decisions that are closely linked to the purpose and the scope of processing and, therefore, are considered by the EDPB to be “traditionally and inherently reserved to the controller.”3 Non-essential means refers to processing decisions that are more practical, day-to-day, implementation decisions and can be left to the discretion of a processor. These include such things as the type of computers or software that an organization decides to use.

The EDPB has suggested that market research companies would be considered processors in the following situation:4

Controller Functions

Present

Purpose of processing
Why. The entity determines why the processing is taking place. X Assuming that a company retains a market research company to provide insights regarding a specific issue, the market research company would not determine the purpose of processing.
Essential means
Data types. The entity determines which data will be processed. X Assuming that the company that retains a market research company provides a list of questions to be asked of consumers, the market research company would not determine the data types to be processed.
Duration. The entity determines how long data is processed / stored. X Assuming that the market research company does not retain the data, or only retains it for as long as instructed, the market research company would not determine the duration of processing.
Recipients. The entity determines who shall have access to the data outside of the organization. X Assuming that the market research company does not have the right to transmit survey responses to third parties, the market research company would not determine who should receive the personal data.
Data subjects. The entity determines whose personal data is processed. X It is not clear whether a market research company that identifies survey respondents would exercise sufficient control over the selection of the categories of data subjects as to function as a controller. The EDPB implied, however, that if a market research company conducted research regarding the types of consumers that would most likely be interested in one of its clients products the selection of data subjects to participate in the market research would not convert the market research company into a controller.

 

1 EDPB, Guidelines 07/2020 on the concepts of controller and processor in the GDPR, Version 1, adopted 2 Sept. 2020, at ¶ 33.

2 EDPB, Guidelines 07/2020 on the concepts of controller and processor in the GDPR, Version 1, adopted 2 Sept. 2020, at ¶ 38.

3 EDPB, Guidelines 07/2020 on the concepts of controller and processor in the GDPR, Version 1, adopted 2 Sept. 2020, at ¶ 38.

4 EDPB, Guidelines 07/2020 on the concepts of controller and processor in the GDPR, Version 1, adopted 2 Sept. 2020, at ¶ 42.

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Photo of David A. Zetoony David A. Zetoony

David Zetoony, Co-Chair of the firm’s U.S. Data, Privacy and Cybersecurity Practice, focuses on helping businesses navigate data privacy and cyber security laws from a practical standpoint. David has helped hundreds of companies establish and maintain ongoing privacy and security programs, and he

David Zetoony, Co-Chair of the firm’s U.S. Data, Privacy and Cybersecurity Practice, focuses on helping businesses navigate data privacy and cyber security laws from a practical standpoint. David has helped hundreds of companies establish and maintain ongoing privacy and security programs, and he has defended corporate privacy and security practices in investigations initiated by the Federal Trade Commission, and other data privacy and security regulatory agencies around the world, as well as in class action litigation.

David receives regular recognitions from clients and peers for his knowledge and experience in the fields of data privacy and security. The National Law Journal named him a “Cybersecurity and Data Privacy Trailblazer,” JD Supra recognized him four times as one of the most widely read names when it comes to data privacy, cyber security, or the collection and use of data, and Lexology identified him six times as the top “legal influencer” in the area of technology, media, and telecommunications in the United States, the European Union, and in the context of cross-border transfers of information. He is the author of the American Bar Associations primary publication on the European General Data Protection Regulation (GDPR) and is writing the American Bar Associations primary publication on the California Consumer Privacy Act (CCPA).