What does data profiling under the Data Privacy Act involve?

Data profiling under the Data Privacy Act involves automating personal data processing to assess individual traits. This process utilizes algorithms and data analytics to extract patterns and insights from a range of personal data, such as demographics, behaviors, and preferences. By doing so, it enables organizations to create profiles of individuals, which can be used for targeted marketing, risk assessment, and various other purposes.

This approach is significant because it allows for efficient data handling while still adhering to regulations concerning privacy and data protection. The use of technology in profiling can raise important considerations about consent, transparency, and the potential for discrimination, hence the need for stringent compliance with the Data Privacy Act.

The other options do not accurately describe data profiling. Manual evaluation of personal data lacks the automation aspect that is central to profiling, sharing personal data with third parties doesn't reflect the nuanced analysis of individual traits associated with profiling, and the option "None of the above" remains irrelevant since option B accurately captures the essence of data profiling.