A security company providing services to a federally regulated bank in Alberta is tasked with conducting background checks on all new hires. This process involves collecting personal information such as criminal record checks, credit history, and employment references. Which of the following principles, as outlined by PIPEDA, best dictates how the security company should handle the collection and use of this sensitive employee information?

Question: A security company providing services to a federally regulated bank in Alberta is tasked with conducting background checks on all new hires. This process involves collecting personal information such as criminal record checks, credit history, and employment references. Which of the following principles, as outlined by PIPEDA, best dictates how the security company should handle the collection and use of this sensitive employee information?

Answer options: ✅ The Principle of Limiting Collection, requiring that only information absolutely necessary for the identified purpose be collected by fair and lawful means.

• The Principle of Openness, demanding that the company make readily available specific information about its personal information management policies and practices.
• The Principle of Individual Access, granting individuals the right to request access to their personal information and challenge its accuracy.
• The Principle of Accountability, stating that an organization is responsible for personal information under its control and shall designate an individual accountable for compliance.

Correct answer: The Principle of Limiting Collection, requiring that only information absolutely necessary for the identified purpose be collected by fair and lawful means.

Explanation: The Principle of Limiting Collection under PIPEDA dictates that organizations should only collect personal information that is necessary for the purposes identified. This principle is crucial when conducting background checks, as it ensures that the scope of information gathered is appropriate and not excessive.