In data protection terminology, what do "controllers" and "processors" refer to?

In the context of data protection terminology, "controllers" and "processors" are defined roles under regulations like the General Data Protection Regulation (GDPR). Controllers are entities that determine the purposes and means of processing personal data. They make decisions about why and how personal data should be processed. This could involve setting policies, defining data retention schedules, or deciding which data elements are necessary for their operations.

On the other hand, processors are entities that process personal data on behalf of controllers. They do not make decisions about the data's purpose or the way it is processed; instead, they follow the instructions provided by the controller. This distinction is crucial in the legal framework surrounding data protection, as it delineates responsibilities and obligations under data protection laws.

Understanding this differentiation is essential, especially for compliance with privacy regulations, as both roles come with specific responsibilities. For instance, controllers have to ensure that they have the legal basis for processing data, while processors must implement adequate security measures and may have contractual obligations to protect the data they handle.

Other options do not accurately capture the legal definitions and responsibilities attributed to controllers and processors, hence they do not provide a suitable explanation in the context of data protection terminology.