Alberta General Insurance Level 1 Practice Exam

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According to PIPEDA, information collected must be used for what?

  1. Any purpose deemed necessary

  2. The specific purpose for which it was collected

  3. General data analysis

  4. Sharing with third-party advertisers

The correct answer is: The specific purpose for which it was collected

PIPEDA (Personal Information Protection and Electronic Documents Act) is a Canadian privacy law that sets out rules for how private sector organizations must collect, use, and disclose personal information. Under this law, organizations are only allowed to collect personal information for specific purposes that a reasonable person would consider appropriate under the circumstances. This means that information collected under PIPEDA must be used for the original purpose for which it was collected, as stated in option B. Options A, C, and D are incorrect because they do not align with the principle of purpose limitation in PIPEDA, which states that organizations must only use collected information for a specific, identified purpose.

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