What is the difference between a data controller and a data processor?

The distinction between a data controller and a data processor is centered on the roles they play in handling personal data. A data controller is defined as an entity that determines the purposes and means of processing personal data. This means they have the authority to decide what data will be collected, how it will be used, and for what specific purposes. Essentially, the data controller has the ultimate responsibility for ensuring that data processing complies with relevant privacy regulations and protects the rights of the individuals whose data is being processed.

In contrast, a data processor acts on behalf of the data controller, carrying out the processing of data according to the instructions provided by the controller. The data processor does not make decisions about the data itself but follows the directions given by the controller regarding how to handle the data. This role is typically more technical, focusing on the actual processing tasks such as data storage, analysis, or manipulation as directed by the controller.

The correct answer highlights these definitions accurately, pointing out the distinctions in authority and responsibility regarding the handling of personal data.