Method and system for protecting personally identifiable information

The present invention provides a way to protect PII (or, more generally, any user "sensitive" information) throughout its life cycle in an organization. The techniques described herein ensure that a user's PII is protecting during storage, access or transfer of the data. Preferably, this objective is accomplished by associating given metadata with a given piece of PII and then storing the PII and metadata in a "privacy protecting envelope. " The given metadata includes, without limitation, the privacy policy that applies to the PII, as well as a set of one more purpose usages for the PII that the system has collected from an end user's user agent (e. g. , a web browser), preferably in an automated manner. Preferably, the PII data, the privacy policy, and the user preferences (the purpose usages) are formatted in a structured document, such as XML. The information in the XML document (as well as the document itself) is then protected against misuse during storage, access or transfer using one or more of the fo