Contract Countdown Series – Most Dangerous Risks #10

#10 Privacy 

We’re counting down from 15 to 1 of the most dangerous risks we see in contracts and this week we’re up to #10 in the Contract Countdown. 

When we are reviewing your contract, you’ll get brownie points from us for including a section on Privacy. Why? Well, if you’re a business that turns over more than $3m per year (or you meet certain criteria under the Privacy Act 1988) then you must have a Privacy Policy telling the public how your business deals with their personal information.

But we’re big on transparency, not just with our own clients but for your customers too. So regardless of whether the Privacy Act 1988 is strictly applicable to your business, we believe that the collection, use, disclosure and security of personal information (such as that collected in a credit application) is so important to instill customer trust in this digital age of big data.

We often see areas of terms or credit applications addressing Privacy obligations, but not in a way that is compliant with the Privacy Act. For example, a credit application will notify the applicant that their personal information is being collected but it doesn’t say why. Or we might see a Privacy Policy that doesn’t quite meet the mark (for example, it tells the public that personal information is disclosed overseas, but it doesn’t specify where).

Penalties for non-compliance with the Privacy Act can be severe, so consider:

  • adding a comprehensive Privacy Statement to your customer onboarding process (e.g. your credit application and your terms);
  • re-wording your Privacy consents for collection of personal information;
  • implementing a Privacy Policy for customers to access on your website; and
  • developing a Privacy Procedure for all staff to follow.

These simple measures can ensure that your Privacy is Perfect with a capital P!

And of course, stay tuned for #9 in our Contract Countdown…

For more information, contact Ledlin Lawyers:-

Email:               info@ledlinlawyers.com.au  

Phone:              02-8488-3389