In a world where data is almost everything, more and more companies want to use it to improve their services, create products, or make smart decisions. But not everything goes; when it comes to personal data, the laws are clear and strict.
The good news is that there is a legal and secure way to work with data without worrying about sanctions or consent: it’s called anonymization. And although it sounds like a technical term, it’s actually a concept every company should understand.
What does “anonymizing” data mean?
Anonymizing is, in a nutshell, removing any clues from a data set that might reveal who it belongs to. If you do it right, you’re no longer handling “personal data,” and therefore regulations like the General Data Protection Regulation (GDPR) don’t apply.
In other words, properly anonymized data can be used freely, even for purposes other than the original ones, because it no longer affects any identifiable person.
A simple example: if you have a database with names, emails, and purchases made, and you manage to transform it into a table that only shows the product, the date, and a reference that can’t be linked to anyone, you’ve converted personal data into anonymous information.
And what isn’t anonymization?
This is the tricky part. Many companies believe they are anonymizing when in reality they are just “covering up” the most obvious details.
For example, removing a name or ID number isn’t enough if the data then still includes information that, combined with other sources, can identify someone.
Imagine you have a list of people living in a small town, including their age, sex, and a medical condition. Even if their name doesn’t appear, it’s easy to tell who they are on sites like this. In that case, the data isn’t truly anonymized, and the company using it may be unknowingly breaking the law.
Why should I care about this if I own a business?
Because it’s increasingly common to want to analyze data, share it with others, develop digital products, or even train artificial intelligence systems. All of this can be legally limited if you’re working with personal data.
Anonymization is, therefore, a legal tool that allows you to move forward with less risk.
Some cases where it’s especially useful:
- When you’re sharing information with an external provider or startup.
- If you want to conduct internal studies on your customers’ behavior.
- If you’re training an AI system and need to use real data.
- If you’re part of a data analysis project with universities or technology centers.
How is data anonymized?
There’s no single way, which is why it’s important to do it judiciously. Some common techniques include:
- Eliminating identifying fields such as names, addresses, etc.
- Grouping information (for example, using age ranges instead of exact ages).
- Scrambling the data or making small modifications so it can’t be reversed.
- Replacing identifiers with random codes that don’t make sense on their own.
The important thing isn’t just the technique, but also ensuring that the final result doesn’t allow anyone to know who’s behind it, even when combined with other sources.
Furthermore, this entire process must be documented, in case someone (such as the Spanish Data Protection Agency) asks you for explanations in the future.
Did you know that there is a free government tool for data anonymization?
The Spanish Data Protection Agency (AEPD) offers an official, free, and accessible tool to help small and medium-sized organizations anonymize structured data sets (such as Excel or CSV files).
It is a platform designed to apply basic anonymization techniques and help comply with the GDPR minimization principle.
- You can find it on the AEPD website: https://www.aepd.es
However, this tool is an aid, not a legal guarantee. The Agency itself reminds us that proper use remains the user’s responsibility. In other words, even if you use this platform, you must ensure that the result meets the legal anonymization requirements and does not reasonably identify anyone.
Therefore, in more complex cases, for example, if you are going to use the data for AI, share it with third parties, or reuse it on a large scale, it is advisable to complement the tool with professional technical and legal advice.
What can go wrong if I don’t do it right?
More than meets the eye. If you think your data is anonymized but it isn’t, and someone manages to identify a person, you could face:
- Financial penalties, in some cases exceeding €100,000.
- Reputation issues, especially if the information involves sensitive information (health, finances, etc.).
- Contractual conflicts with partners, clients, or suppliers.
- Blocking of technology projects due to legal issues.
Therefore, it’s not just about “removing names” or typing data into an Excel spreadsheet. Proper anonymization requires understanding both the technical and legal aspects.
How can a specialized firm help you?
In our firm, we work precisely at the intersection of innovation and legal compliance. We help companies:
Determine whether they can use or share certain data anonymously.
Review processes to ensure legal requirements are truly met.
Draft clear clauses in contracts that handle data.
Furthermore, if you’re involved in projects involving AI, big data, or digital transformation, anonymization can be the key to moving forward smoothly.
In conclusion, using data is almost essential today, but doing it well can be the difference between growth and trouble. Anonymization isn’t magic, but it is a powerful tool for companies to work with information without worrying about sanctions or legal obstacles.
And as with many things, the key isn’t doing it “more or less well,” but doing it with guarantees.