The statement is incorrect; information that needs to adhere to specific legal, regulatory, or contractual obligations is known as regulated data. Regulated data is subject to various rules based on the type of information it encompasses. For example, health information may need to comply with specific healthcare-related privacy laws, financial information might need to adhere to banking regulations, and personal data could be subject to data protection laws. Not properly securing regulated data can lead to legal penalties and reputational damage.