This clause defines exactly what the other party can do with any personal data you give them—for example, whether they can use customer email addresses only to send invoices, or whether they can also use them for marketing. This is legally critical under UK GDPR and US state privacy laws: you cannot use personal data for purposes beyond what was originally agreed, even if it seems harmless. If a company collects your employee names for payroll but then uses them for direct marketing without permission, that's a breach. The clause protects individuals whose data is being processed and protects the company giving the data from liability.
Be very specific about what purposes you're allowing—write "invoicing only" rather than vague language like "business purposes." If the other party wants to use data for multiple purposes (like marketing or analytics), either refuse or require them to ask your permission each time, and ensure the clause says they cannot use the data for any purpose you haven't explicitly approved. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause defines exactly what the other party can do with any personal data you give them—for example, whether they can use customer email addresses only to send invoices, or whether they can also use them for marketing.
Why should I care about this clause?
This is legally critical under UK GDPR and US state privacy laws: you cannot use personal data for purposes beyond what was originally agreed, even if it seems harmless.
What are my options?
If a company collects your employee names for payroll but then uses them for direct marketing without permission, that's a breach.
How does this affect small businesses?
The clause protects individuals whose data is being processed and protects the company giving the data from liability.