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PIPEDA, which stands for the Personal Information Protection and Electronic Documents Act, establishes guidelines for how personal information is to be handled in Canada. One key principle under PIPEDA is that organizations must collect personal information for specific, identified purposes and that such information can only be used for those stated purposes. This ensures that individuals’ personal information is handled with care and transparency, ultimately fostering trust between organizations and consumers.

When a business collects personal information, it must clearly communicate the specific purpose for which the information is being gathered. This principle helps to protect individuals' privacy rights and gives them control over their information. If an organization were to use the data for a different purpose without the consent of the individual, it would violate PIPEDA provisions.

In contrast, using collected information for any purpose deemed necessary or for general data analysis does not align with the strict requirements of PIPEDA. Similarly, sharing personal information with third-party advertisers without consent would also be contrary to the principles set out in the act. This framework emphasizes the importance of explicit, informed consent for the use of personal data, thereby reinforcing the specific purpose identification as the correct approach under PIPEDA.