Data minimization entails the practice of limiting the collection and retention of personal data to only what is necessary for a specific purpose. This principle helps reduce the risks associated with data breaches and enhances user privacy. Organizations implementing data minimization strategies ensure compliance with regulations such as GDPR, which mandates collecting only relevant information. By minimizing unnecessary data accumulation, businesses not only protect user rights but also streamline data management processes, leading to improved operational efficiency and trust with customers.