Data breach laws and Implementation

A data breach is a significant threat to individuals and organizations more so in the digital era of heightened insecurities. The government, companies, and individuals are responsible for enhancing data privacy in different ways. The obligations differ across the parties, for example, the government is responsible for formulating and enforcing data breach laws among individuals and organizations. The state penalizes both institutions and individuals who violate data privacy regulations. Contrastingly, organizations and individuals implement the government-formulated laws such as reporting a breach of privacy to the government and victims within thirty days. However, all the parties have a similar objective in the formulation and protection of data privacy – protecting the safety of personal information from access by unauthorized third parties. The government formulates data privacy laws and enforces the regulations among individuals and organizations by imposing severe penalties on the perpetrators, but the objective of both the creator and implementers of data breach laws is similar; protecting personal information from access by unauthorized third parties.

The Australian government has made significant efforts to enhance data privacy across the country. Irrespective of data protection laws that have been in existence in the country for decades, Australia has increased the regulations in the digital era of increased data breaches. The country launched new regulations effective from February 22, 2018, popularly identified as the Notifiable Data Breaches (NDB). The law requires all companies to inform the government and individual victims if they suspect access to personal data by unauthorized third parties. The need for the law emerged after recent data breaches in the country. In 2016, for example, approximately half a million Australians who had volunteered to donate blood through the Red Cross had their data compromised.

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NDB is an extension of the Privacy Act 1988, and its provisions are similar to data protection laws adopted in the U.S. and other parts of the developed world. NBD is applicable across multiple parties including nonprofit organizations, healthcare providers, government agencies, as well as corporates. The institutions must have a yearly turnover of $3 million upwards. NDB requires firms holding private information about its clientele to notify its customers about a potential privacy breach if they suspect unauthorized third-party access. The notifications should be within thirty days from the day of breach.

Besides, notifying the government and at-risk customers, the Australian government requires businesses under NDB to be specific about actions the victims of a data breach should take. Moreover, organizations must report the breach to the Australian Information Commissioner through an online platform or compose a Notifiable Data Breach Statement. Individuals and organizations that fail to report an eligible breach face severe consequences. Penalties include $1.8 million for companies and $360,000 for individual perpetrators respectively.

Businesses in Australia are legally bound to protect data about their clientele. Regardless of the size of the company or the industry of operation, entrepreneurs adhere to a set of guidelines to enhance the safety of their customers’ information. The first principle that firms must adhere to includes harvesting customer information on a lawful basis. According to the General Data Protection Regulation (GDPR), a company must have a legal reason to extract a client’s personal details. GDPR is a bill that binds businesses to the responsibility of safeguarding customer data.

The firm is eligible for informing the customer of the organization’s intent to process their data. The approach ensures that businesses do not harvest information for malicious use. Moreover, it protects the consumer from being caught unawares, for example, when they learn their private information is indeed in the public domain. Besides collecting customer data with legal justification, the law requires businesses to only use the information for the intended purposes. Irrespective of the awareness of the customer about the possession of their data by a company, firms cannot utilize the data for other purposes if the client is unaware.

On the same note, companies do not collect more data than they require about a consumer. Further, the information gathered must be up to date. Companies exercise extra caution to verify personal details about a customer to ensure it is error free. Companies further ensure they dispose of personal details about their customers after the intended use. It is Illegal to hold sensitive data about clients if it is no longer significant to the firm. However, businesses can compromise this principle if the reasons for holding the information includes archival in the public interest. The rule is also exceptional if a company retains information for statistical, scientific, or historical use.

Companies can only process personal information about a client under specific conditions. First, the owner of the information must authorize the processing of their details and for an identified purpose. Secondly, companies only process data in the event of having a contract with the owner. Alternatively, the individual could request for processing if they have included the process as a requirement before entering into a contract with the organization. Third, businesses process customer information if they have a legal obligation to do so. Therefore, even with customer consent, firms cannot process the data if it is not legally justified.

Businesses must further grant customers the right to access collected data for purposes of rectifications or erasure. On the same note, customers are justified to inquire about the safety measures the business has put in place to protect access to personal data by third parties. It is also critical to note that the right to access is a free service to the customers. Nevertheless, businesses are justified to charge a reasonable fee in case customers make repetitious requests. Institutions are responsible for erasing customer data upon request. However, clients do not have an absolute right to the erasure of personal data since the privilege only applies in certain circumstances.

The Australian community is responsible for enhancing data privacy at the individual level. They should report perpetrators of privacy breach directly to the company. In case the organization does not respond to the complaint within thirty days, individuals have the mandate to complain to the Office of the Australian Information Commissioner (OAIC). Complaints forwarded to the OAIC must be in writing. Having a lawyer is optional, but complainants in need of legal representation hire lawyers at their cost.

Individuals are responsible for reading and understanding a company’s privacy policy before entering into any form of contracts with organizations. Moreover, they should give their consent to the business to store their data and establish the purpose of the information. Similarly, the must follow up to ensure the businesses do not use the data for unauthorized purposes. On the same note, individuals are responsible for requesting companies to delete their information if they consider terminating an existing contract. A customer who no longer requires the firm to send monthly newsletters, for example, can request for the removal of their email from the company’s database.

Conclusively, the government is responsible for the formulation and enforcement of data breach laws while individuals and institutions are obliged to implement the policies. The state creates laws to safeguard personal information and enforces the regulations by imposing significant penalties on perpetrators. Organizations and individuals ensure strict adherence to the state-formulated laws such as reporting a breach to the government and victims within thirty days of the breach. Irrespective of the different responsibilities performed by individuals, organizations, and the government, the three parties have a common goal – enhancing data privacy.


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