Australia: Do I need to notify anyone when personal information goes missing?

Losing an expensive company laptop or having your client data base 'hacked' can be costly to remedy, and embarrassing. But have you assessed the Privacy Act implications? Organisations bound by the Act need to consider how they can minimise any damage caused by personal information going astray, including by notifying those affected.

Data Breaches

Data breaches can occur in a variety of ways. The Office of the Australian Information Commissioner (OAIC) has issued a Guide to Handling Personal Information Security Breaches which gives the following examples:

  • lost or stolen laptops, removable storage devices or paper records containing personal information;
  • hard disc drives and other digital storage media (for example, multifunction printers) being returned to equipment lessors without the contents first being erased;
  • data bases containing personal information being hacked; and
  • organisations mistakenly providing personal information to the wrong person, for example by sending details out to the wrong address.

OAIC Guidance

The OAIC Guide is guidance, not legislation, and the OAIC acknowledges that while compliance with the Guide is not mandatory, it is strongly recommended. Furthermore, compliance with the Guide may ensure that Australian Privacy Principle 11 (APP 11) (which is legislative) is satisfied. APP 11 is one of thirteen Australian Privacy Principles that could apply to an organisation.

By APP 11 an organisation that holds personal information must take such steps as are reasonable to protect the information from:

  1. misuse, interference and loss; and
  2. unauthorised access, modification or disclosure.

Personal information is information or an opinion about an identified or identifiable individual.

When a data breach occurs, the steps that an organisation should take to comply with APP 11 will depend upon the circumstances and be determined primarily from an evaluation of the risks associated with the breach. An important reasonable step to be considered by an organisation is notification of affected individuals and the OAIC.

The Australian Law Reform Commission has noted that the primary rationale for notifying people that their personal information has been breached is to help minimise the damage caused by the breach. The ALRC has also commented that as a result of the reputational damage to organisations that notification can cause, they may not have sufficient incentives to voluntarily notify customers of a data breach.

In June 2015 the OAIC reported that it has finalised enquiries into Australian retail company Catchoftheday.com.au Pty Ltd (COTD) following a data breach notification received in June 2014 in respect of a breach which occurred in 2011 that compromised the personal information of the COTD customer base. In the statement the Commissioner "expressed concern about the size of the breach, the possible compromise of financial information, and the significant delay between COTD becoming aware of the incident and notifying affected individuals".

Faced with this disclosure dilemma, is it mandatory for an organisation to notify affected individuals of the breach?

Is Notification Mandatory?

There is no specific provision of the Privacy Act that requires notification. In its 2008 Privacy Report, the Australian Law Reform Commission recommended the inclusion of a data breach notification obligation in the Privacy Act. However, this recommendation was not implemented in the first stage response to the ALRC Report. Further attempts were made in 2013 and 2014 when Bills were introduced by Labor while in government and subsequently while in opposition to mandate data breach notification. The first Bill lapsed when it had not been heard by the Senate on the last day of Parliamentary sittings and the second was blocked by Coalition senators when the Bill was introduced in the Senate.

It was reported that while the Coalition senators rejected the legislation proposed by Labor because of insufficient consultation and discussion, they did support the principle of requiring businesses and government to notify the public of data breaches.

So, absent amendment of the Privacy Act to require data breach notification, are organisations free to choose whether to notify affected individuals of the breach?

More OAIC Guidance

The Office of the Australian Information Commissioner points out that notification of the individuals who are or may be affected by a data breach, and the OAIC, may be a reasonable step required by APP 11. Furthermore, a new Guide to Privacy Regulatory Action issued by the Commissioner makes clear that data breach incidents may in certain circumstances result in Commissioner-initiated investigations under the Privacy Act.

Importantly for organisations considering whether to make a data breach notification is the Guide's statement of the matters that the Commissioner will take into account when deciding whether it is necessary to open a Commissioner-initiated investigation into a data breach incident. Those factors are whether:

  • the entity has voluntarily and proactively notified the OAIC of a data breach incident; and
  • the entity responded (or is the process of responding) appropriately to the breach including by containing the breach, taking reasonable steps to mitigate harm to affected individuals, and taking steps to limit future breaches; and
  • the entity cooperates fully with the OAIC's enquiries into the breach.

Should there be a Commissioner-initiated investigation; the OAIC may take further regulatory action that includes:

  • seeking an enforceable undertaking under section 33E of the Privacy Act;
  • making a determination under section 52(1A) of the Privacy Act; and
  • where a civil penalty provision has been breached, applying to the Court for a civil penalty under section 80W of the Privacy Act.

Do you need advice?

Organisations that have suffered a data breach face a difficult decision. Uncertainty remains as to whether notification is mandatory. It is clear that without amendment of the Privacy Act, there is no specific requirement in the Act for a data breach to be disclosed. However, notification may be a reasonable step required for compliance with APP 11 and will be a factor considered by the Commissioner when determining whether to open a Commissioner-initiated investigation that may in turn result in penalties for the organisation.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Mondaq Advice Centre (MACs)
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.