Can multiple sensitivity labels be applied to the same file?

The correct answer is that multiple sensitivity labels cannot be applied to the same file. In Microsoft Information Protection, a sensitivity label defines how sensitive information is handled and protected. When a label is applied to a document or an email, it sets the classification and protection settings for that content. If more than one label were allowed on a single object, it could create ambiguity about the level of protection and classification assigned to that data, which is counterproductive to the purpose of labels.

By enforcing a single label application, Microsoft ensures a clear, consistent classification level and associated policies that govern how the information is shared, accessed, and protected. This simplicity aids users in understanding the sensitivity of the information they are handling, thereby reducing the risks of misclassification or improper handling. Hence, the framework is designed for clarity and effectiveness in data protection and compliance.