Data Protection in Australia

Enforcement in Australia

The Information Commissioner is responsible for the enforcement of the Privacy Act and will investigate an act or practice if the act or practice may be an interference with the privacy of an individual and a complaint about the act or practice has been made. Generally, the Information Commissioner prefers mediated outcomes between the complainant and the relevant organization. Importantly, where the Information Commissioner undertakes an investigation of a complaint which is not settled, it is required to ensure that the results of that investigation are publicly available. Currently, this is undertaken by disclosure through the OAIC website of the entire investigation report.

The Information Commissioner may also investigate any "interferences with the privacy of an individual" (i.e. any breaches of the APPs) on its own initiative (i.e. where no complaint has been made) and the same remedies as below are available. With a number of large scale, high profile data breaches occurring in Australia recently, the Information Commissioner appears to be adopting a more proactive and more publicised approach to investigation and enforcement action. The Information Commissioner's proactive approach to enforcement will be enhanced by the measures in the Privacy Act Amendment Act, which includes the ability to issue infringement notices in relation to some civil penalties (see below) and hold public inquiries into privacy matters.

After investigating a complaint, the Information Commissioner may dismiss the complaint or find the complaint substantiated and make declarations that the organization rectify its conduct or that the organization redress any loss or damage suffered by the complainant (which can include non-pecuniary loss such as awards for stress and / or humiliation). The maximum penalties that may be sought by the Information Commissioner and imposed by the Courts for serious interferences with the privacy of individuals are the greater of (i) AUD$ 50 million, (ii) three times the benefit of a contravention, or (iii) (where the benefit cannot be determined) 30% of domestic turnover. As a result of the Privacy Act Amendment Act, a lower civil penalty of up to AUD$ 3.3 million (using current penalty units) will apply for non-serious interferences with privacy.

The Privacy Act Amendment Act also allows the Commissioner to issue infringement notice, which will result in payment of civil penalties, for specific breaches of the APPs. These are breaches which are considers to be administrative in nature, and include non-compliant privacy policies, failure to provide appropriate opt-out mechanisms for direct marketing and failure to deal with correction requests.

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