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PROTECTING PRIVACY ONLINE
July 1998

 

 

Anticipating the future

The Victorian Government is first out of the blocks with its proposal to develop a consistent legal and regulatory framework to protect the privacy of users of electronic services.

The Minister for Multimedia, Mr Alan Stockdale, has targeted the present privacy laws as outdated and ambiguous, and asserts that they present a barrier to the promotion of information-based industries.

In response to these inadequacies Mr Stockdale has sponsored two Bills the Data Protection Bill and the Electronic Commerce Framework Bill (a Bill is a proposed law that becomes an Act when passed by the Government).

Data protection deals with a consumer's personal information; electronic commerce deals with various types of trade that are carried out by "electronic" means, such as the internet, where the buyer and seller are not face to face.

The threat to privacy

Do you sometimes despair at the intrusion of Big Brother, where your most personal details are known to everyone from Medicare to online retailers?

It's certainly one of the more worrying aspects of the information age that confidential private data is not only relentlessly collected, but is also handed around among service providers like a well read book. It's no wonder that many internet users are reluctant to provide personal information in what they believe, with some justification, is an unregulated, insecure environment.

What's the law?

How does the law guard your confidential personal details? The bottom line is not very well!! There's not much of substance out there to protect those details.

There is no general common law (judge made law) right to privacy, and the federal Privacy Act only deals with the ACT and Commonwealth Government agencies.

So with the advent of multimedia technology, and the exponential growth of the internet in particular, there is now a substantial challenge for lawmakers.

This is where the Victorian Data Protection Act will provide a legislative framework of protection, and pick up the vacuum of federal laws.

How will it work?

The data protection framework encourages a voluntary code of conduct that businesses and government agencies will be encouraged to develop, and legislative minimum standards for those who don't.

A Privacy Commissioner will vet the voluntary codes to decide if they comply with the regime, and will also be available as a referral point for complaints that are not settled to the satisfaction of consumers. If the Commissioner cannot mediate a settlement, the complaint will be dealt with by the recently established Victorian Civil and Administrative Tribunal.

Privacy principles

The Data Protection Act will establish principles that act as minimum standards for handling personal information. It recognises that consumers are entitled to know whether information has been collected, the reasons it is needed, and that there is an opportunity to correct inaccurate data.

Organisations will therefore be discouraged from collecting excessive and irrelevant information, and find themselves pressured to dispose of data that is no longer needed. Importantly, the principles suggest that information gathered from a different agency will still be subject to the same scrutiny.

It will be the job of the Privacy Commissioner to see that the community is aware of their rights, and to audit the activities of participating organisations. The Commissioner will report annually to Parliament, publish reports, and make recommendations to improve the system.

Why not a federal code?

Some industry players have suggested that the Victorian proposal will undermine efforts towards a unified national approach to data-protection legislation.

Mr Stockdale has acknowledged the concerns of some sectors of the online economy, but it is clear from the Government's Discussion Paper, released on 1st July, that Victoria is prepared to give way to a national set of principles that may be enacted in legislation. Already the government dominated federal Public Accounts and Audit Committee has cast doubts on the effectiveness of the self regulatory approach favoured by the Prime Minister.

It is clear that Victoria gives priority to self-regulation as well, but only to the extent that government and business meets minimum standards that are enshrined in legislation. There may be worthwhile arguments around the need for a national privacy scheme, but the Victorian proposal deserves commendation when looked at from the point of view of consumers. If anything, it will give organisations a real incentive to take a hard look at their practices, especially if they don't want to be subject to legislation. Copies of the two Discussion Papers on the Data Protection Bill and the Electronic Commerce Bill are available from the Department of Multimedia in Melbourne, or can be downloaded from their website www.mmv.vic.gov.au under "publications". Comments should be made by 31 July.

 

Read this: The legal information contained above is intended to be general information about the law. It is not a substitute for legal and other professional advice. Lawscape Communications P/L does not accept responsibility for loss to any person, who either acts or does not act because of this information.

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