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Using Privacy by Design is crucial during the early stages of product development and when planning any new processing activities that involve personal data. This approach advocates for the inclusion of privacy considerations from the outset, rather than as an afterthought.

When planning a new processing activity, it is essential to identify potential privacy risks and implement strategies to mitigate them before the activity begins. This proactive approach helps ensure compliance with privacy regulations and builds trust with users by prioritizing their data protection.

Similarly, while developing a new product or feature, integrating privacy features and assessing the impact on user data should be integral components of the design and development process. This ensures that the product not only meets legal obligations but also addresses user expectations regarding their privacy.

In contrast, the choice regarding buying new living room furniture is unrelated to privacy considerations and does not pertain to data processing or product development, highlighting the importance of focusing on scenarios that directly involve personal data management. Therefore, the correct response encompasses both relevant scenarios that emphasize the principle of embedding privacy early in the design and planning phases.