Effective today (12th March 2014), Australia's Information Privacy Principles and National Privacy Principles will be replaced by 13 Australian Privacy Principles (APPs). Here are the important points to note:
- Applies to all organisations that turn over more than $3 million per year and collect personal data.
- Fines up to $1.7 million for breaches.
- Organisations must be transparent about how they collect, use and store personal data.
- Organisations cannot collect data “just in case they need it”.
- If personal data is disclosed to a 3rd party, the organisation disclosing the data is responsible for ensuring the 3rd party understands their obligation and that the consumer knows about the disclosure.
This effectively gives the Office of the Australian Information Commissioner (OAIC) teeth as the fines are now significant when compared to previous legislation. For example, Australian Telecommunications giant Telstra has only been fined a measly $10,200 AUD for their recent violation.
Mindful collection and sharing
The days of "we'll ask for the information in case we need it" are gone. Organisations need to think about what they really need to achieve the task at hand and collect only what they need. As consumers, we should be able to sign up for online services in a shorter amount of time instead of frustratingly getting stuck on a submission form which constantly complains we haven't filled in certain fields.
Marketing programs and processes need to be reviewed to ensure personal data is not being inappropriately shared with 3rd parties. Many companies disregard the flow of information and the lack of visibility & understanding around how this is done, sometimes through no fault of their own. The number of technology integration points involved is challenging, but as privacy is now tied to financial penalties, this is a huge risk to businesses and should be addressed urgently through the involvement of IT departments and potentially external assistance.
If information is justifiably shared outside of the organisation, they will need to have the ability to determine if an overseas 3rd party they are disclosing personal information to also complies with the privacy act. This is a function many organisations will not have and will need to be included as part of their risk management program.
In all things privacy-related, things tend to be up for debate, none more so than the term "personal information". The safest way for organisations to tackle this ambiguity is to assume data can be tied together from various sources, even when not immediately obvious as to how, to form context that can be tied to an individual. For example, an IP address is a potential identifier of an individual when combined with information from the relevant Internet service provider.
Personal data can also be stored in unexpected locations that organisations may be unaware of, the most obvious being application logs. IT departments need to perform an internal audit of the information applications use and ensure they are not subject to inadvertent personal data leakage through logs as a result of log file settings.
There is also additional administrative overhead in dealing with personal information and its access. The right technologies and a properly implemented reliance on external information providers can help. For example, power can be given to individuals to have complete control over the information stored about them through self-service portals. In addition, there may not be a need to store certain pieces of information. Standards exist (e.g. pick your favourite federated identity standard) that allow a relying party requiring information about an individual to ask for it from an identity (or attribute) provider and use it in flight without having to store the information on disk.
Beyond the more mature federated identity standards, there are emerging ones such as User Managed Access (UMA) that place more power in the hands of consumers (i.e. the rightful owners of the data). While not yet supported in many technology stacks, the concepts are sound and organisations would do well to adopt the thinking behind what UMA is attempting to achieve in the longer run.
Australian organisations need to treat personal data like they would financial information. For example, there are a raft of measures dictated by the PCI-DSS standard regarding the storage and usage of credit card numbers. While the number of credit card data breaches have proven PCI-DSS alone does not prevent breaches, existing data protection standards are a good start for organisation struggling to deal with the implications of the new privacy principles. Organisations would do well to adopt many of the same measures dictated by security standards in protecting personal data as a start. As they understand the requirements and data flows over time, more sophisticated security and access management measures can be implemented to round out an evolving security program.
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