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If a company does not state a clear purpose before collecting consumer data, what is the main legal weakness?

Answer and explanation

Correct answer: Lack of consent and purpose transparency

The governing concept is lawful and transparent data collection within the legal environment. Before collecting personal or consumer data, a business should communicate why the data is needed, what categories will be collected, how they will be used, and where appropriate, obtain informed consent. Without a clearly stated purpose, the customer cannot make a meaningful decision about providing the information, and the company may later use the data in ways that exceed the original expectation. This creates a weakness in purpose limitation, transparency, accountability, and consent management. Therefore, option C is correct. A production delay is an operational issue, a change in fashion is a market or social issue, and resource shortage is an economic or environmental concern; none addresses the legal defect in data collection.

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Business-EnvironmentLegal-EnvironmentData-PrivacyClass-12Legal EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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