For PII and PHI, what should be the limit on the amount of data collected?

The most appropriate practice concerning Personally Identifiable Information (PII) and Protected Health Information (PHI) is to collect only the information that is necessary to assist the consumer. This principle is fundamental to privacy and data protection regulations, such as the Health Insurance Portability and Accountability Act (HIPAA) for PHI and various laws governing PII. By limiting data collection to what is strictly needed, organizations can help ensure that they are respecting the privacy of consumers and minimizing the risk of data breaches or misuse.

Collecting excess data can lead to potential liabilities, as it makes organizations vulnerable to security risks and increases the potential impact in the event of a data breach. Additionally, gathering unnecessary information violates ethical principles and regulatory standards intended to protect individual privacy. Therefore, emphasizing the necessity of information helps maintain a balance between operational needs and consumer rights.