Privacy Statements

Roger Clarke

Principal, Xamax Consultancy Pty Ltd, Canberra

© Xamax Consultancy Pty Ltd, 1999

This document is at http://www.xamax.com.au/DV/PStatemts

Background

It's clear that consumer electronic commerce is being held back by lack of trust; and a key element in that shortfall is the lack of privacy protections on the Internet.

The U.S. and Australia both lack legislation to ensure privacy protection in the private sector. The Australian Government has committed to introducing a regime to the Parliament. The U.S., on the other hand, is still hoping to withstand pressure from consumers, and from the European Union, and hence avoid implementing a legal enforceable scheme.

One of the primary measures proposed in the U.S. in order to avoid legislation has been Privacy Statements on web-sites. Because this has become a vogue in the U.S., it is being discussed in Australia as well.

This document provides guidance to Australian corporations and government agencies in relation to Privacy Statements.

Should Your Organisation Have a Privacy Statement?

There is no legal requirement for a company to have a Privacy Statement on its web-site.

There are, however, some significant advantages in doing so. These include:

• demonstrating to customers, prospects and visitors that your organisation is aware of people's privacy concerns, and has taken steps to address them
• demonstrating to regulators and privacy advocates that your organisation is addressing privacy issues
• establishing a clear framework within which any complaints about the organisation's privacy practices can be addressed

It must be appreciated, however, that an organisation is bound by statements made on its web-site, and may be subject to prosecution or civil suit if its statements are misleading or are not honoured.

Developing a Privacy Statement

It is advisable that your organisation develop a Privacy Statement within the context of a broad strategy relating to privacy and other consumer matters. A separate document provides guidance in relation to the development of a privacy strategy.

The following steps then need to be taken:

• determine the scope you want your Privacy Statement to have. In particular, the statement might be a complete customer charter covering terms and conditions, and addressing transactions undertaken over the counter, and by telephone and mail; or it might be restricted to privacy, and to the specific context of Internet communications
• consult relevant laws, Codes of Conduct, and corporate policies that affect your organisation's dealings with its customers
• consider current Government policies, emergent privacy principles, and draft legislation
• determine your organisation's intentions in relation to data collection, data storage, data usage, and data disclosure
• define the approach your organisation takes, or intends to take, in relation to privacy-related questions and complaints from the public, from public interest representatives and advocates, from industry associations, and from regulatory bodies
• express your organisation's intentions in a draft Privacy Statement
• undertake consultation with representatives of the organisation's clientele, privacy advocates and regulatory bodies
• promulgate your organisation's Privacy Statement, on your web-site, and through other channels

A well-designed Privacy Statement is of course a significant opportunity to gain coverage through appropriate media, in order to project the organisation's desired image to its clientele, and to project an image of corporate responsibility to regulatory bodies.

Assistance

Xamax Consultancy has the longest experience of any privacy consultancy in Australia, is up-to-date in relation to developments in Australia and around the world, and is well placed to provide assistance in the development of corporate privacy strategy and Privacy Statements.

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Created: 3 May 1999

Last Amended: 3 May 1999

Xamax Consultancy Pty Ltd, ACN: 002 360 456
78 Sidaway St
Chapman ACT 2611 AUSTRALIA
Tel: +61 2 6288 1472, 6288 6916
Roger.Clarke@xamax.com.au