What is “balancing test” for legitimate interest?

The balancing test is the third component of a Legitimate Interest Assessment, weighing your interests against the data subject's rights, freedoms, and expectations. After establishing that you have a legitimate interest and that processing is necessary to achieve it, you must determine whether the individual's interests override yours. This isn't a simple calculation. It urequires thoughtful analysis of multiple factors and honest assessment of the impact on data subjects.

Key factors in the balancing test include: relationship and expectations (do individuals have a relationship with you that would lead them to expect this processing?); nature of the data (is it sensitive, private, or potentially embarrassing?); impact on individuals (what are the consequences for them-loss of control, unwanted communications, potential discrimination?); safeguards (what measures minimize impact, like easy opt-out, data minimization, security?); and reasonable expectations (would a typical person in their position expect this processing?). The test should be documented, showing your reasoning on each factor.

The balancing test must be genuine, not perfunctory. Regulators examine whether organizations actually considered individual interests or just checked a box. If your assessment always concludes that your interests prevail regardless of circumstances, you're probably not conducting honest balancing. Be prepared to acknowledge when legitimate interests don't apply because individual rights override. This ushows the assessment was real. The balancing test asks: even though I have a legitimate reason and this processing is necessary, do their rights outweigh mine? Answer honestly.