Privacy breach can be costly

MCCULLOUGH Robertson Lawyers senior associate Emma Weedon says the need to comply with the provisions of the Privacy Act has never been more pressing.
The percentage of businesses that consider it important has never been so low, with most considering it a ‘toothless tiger’.

“The number of businesses that also wrongly believe a website privacy policy is sufficient to cover them has also never been so high,” says Weedon.

“Whilst compensation awards under the Privacy Act have to date been quite low, the legal and general business cost of defending a complaint can be significant, particularly when compared to the relatively low cost of ongoing compliance.”
Businesses must comply with the 10 National Privacy Principles (NPPs) if they are to avoid customer complaints to the Privacy Commissioner, which she believes are relatively straightforward to make and can cost an organisation significant amounts of time and money.

“The biggest complaint by individuals is that an organisation has used their information in a way that it was not authorised to, or that it has disclosed information to a third party without permission.”
Common areas of complaint also include marketing activities, medical records and the failure to maintain correct information.

Weedon cites the Australian Law Reform Commission’s report into privacy legislation as potentially putting an end to current privacy law misconceptions if it is enacted, with the introduction of an ‘at fault’ data breach notification system with harsher penalties.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Fashion retailer Accent Group to cut Glue Store location count in half

Fashion retailer Accent Group to cut Glue Store location count in half

The ASX-listed fashion retailer responsible for such brands as Plat...

Domino's to shutter 100 stores after crusty results

Domino's to shutter 100 stores after crusty results

The board of Domino's Pizza Enterprises (ASX: DMP) waited until...

Accolade Wines owner buys French giant Pernod Ricard’s global wine assets

Accolade Wines owner buys French giant Pernod Ricard’s global wine assets

Australian Wine Holdco, a consortium that owns the country’s ...

Aussie boxing franchise UBX to enter United Arab Emirates

Aussie boxing franchise UBX to enter United Arab Emirates

Brisbane-based boxing franchise UBX has announced its eighth intern...