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In the context of data privacy, what is required when a company alters the usage of personal data?

  1. Notification to all users

  2. Explicit consent from users

  3. Data anonymization

  4. Requesting a new signature on contracts

The correct answer is: Explicit consent from users

When a company alters the usage of personal data, obtaining explicit consent from users is a fundamental requirement in ensuring compliance with data privacy laws and regulations. This requirement is rooted in principles established by various data protection regulations, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States. Explicit consent means that individuals must give clear and unambiguous permission for their data to be used in the newly defined ways. This safeguards individuals’ rights over their personal data, allowing them to maintain control over how their information is utilized. It's especially important when the scope of data usage changes significantly from what users were initially informed about when they first provided their data. In contrast, while notifying all users may be considered good practice, it does not replace the need for explicit consent. Data anonymization can reduce privacy risks but doesn’t address consent itself, and requesting new signatures on contracts may not always be necessary or relevant to all types of data usage changes. Therefore, obtaining explicit consent directly addresses the legal and ethical obligations associated with altering the use of personal data.