Why Business Owners and Digital Content Creators Need to Take Privacy Seriously
In today’s digital world, it’s common for business owners, digital content creators or influencers to collect personal information from their customers, audience, followers - whether through appointment bookings, online enquiries, or just for some social media interactions. Gathering details like a person’s name, email address, or phone number may seem harmless, and these interactions certainly make it easier to engage with your audience or clients.
However, even ordinary personal information needs to be handled carefully. Privacy breaches involving basic data can have serious consequences, both for the individual whose information has been mishandled and for the business responsible. From emotional distress to financial costs and reputational damage, privacy breaches can cause lasting harm. With such risks, this raises the question: Do I need a Privacy Policy on my Website?
In this article, we will explore the risks involved, the legal obligations for those collecting information, and how both businesses and customers can protect themselves.
What Are the Risks of Collecting Personal Information?
Even if you are not dealing with highly sensitive information like medical records, mishandling basic personal information such as names, phone numbers, and addresses can have serious repercussions.
Consider the following scenario…
A former customer’s contact information was shared by a business who was their previous service provider. This company provided their details, without permission, to someone who claimed to be the customer’s family member. This resulted in unwanted contact, causing emotional distress and forcing the customer to change their phone number and seek legal advice. The business could have avoided this situation with proper safeguards in place, such as a clear privacy policy that defined how personal information should be handled and disclosed.
The risks are clear - unauthorised disclosures of personal data can lead to
- Emotional Distress: Individuals may experience anxiety, fear, or emotional harm when their personal information is disclosed without consent.
- Legal Consequences: Businesses could face legal claims or lawsuits if found to have breached privacy laws or caused harm.
- Reputational Damage: Mishandling customer or audiences’ data can erode trust and negatively impact a business’s reputation, leading to lost clients or followers.
How Do Businesses Avoid These Risks?
In this case, if the business had outlined the scope of collection, storage, and disclosure of personal information in a privacy policy, it would have set clear guidelines for employees and would have established clear expectations for the customers.
By having a prominently displayed privacy policy, customers would have understood precisely how their personal information was to be used—for specific purposes only—and would have been reassured that it would not be disclosed for any unauthorised reasons. This clarity could have mitigated or even prevented the breach by ensuring that the receptionist understood the boundaries of information disclosure and adhered to the lawful procedures for handling personal data.
As prescribed by the Australian Privacy Principles (APPs) under the Privacy Act 1988 (Cth), transparent processes and clear policies not only protect customer privacy but also help businesses avoid legal liabilities arising from unauthorised disclosure.
Who Needs a Privacy Policy?
It is true that, strictly speaking, the Privacy Act 1988 (Cth) does not require businesses with a turnover below $3 million to comply with its provisions. However, having a privacy policy is still highly recommended. Even if your business is technically exempt, implementing a privacy policy demonstrates a commitment to transparency and best practices in data protection. This helps to build trust with customers and mitigates the risks of potential complaints or breaches involving personal information.
What Should a Privacy Policy Include?
Content of a Privacy Policy
By implementing a privacy policy, business owners and content creators can protect themselves and build trust with their audience. However, it is crucial that the privacy policy is tailored to the specific needs of the business. A one-size-fits-all approach could either become too restrictive for what you want to achieve or fail to adequately protect your business.
Engaging a competent legal advisor, like us, Argon Law, ensures that your privacy policy strikes the right balance—providing maximum legal protection while allowing flexibility in how you collect, store, and use personal information. Our team can craft a policy that is both compliant with the law and aligned with your business goals.
What Key Areas Should a Privacy Policy Include?
- What personal information is collected (e.g., names, phone numbers, and email addresses).
- How the information is used (e.g., for booking appointments or following up with enquiries).
- Who the information is shared with, if applicable (e.g., no sharing unless required by law).
- How the information is stored and secured (e.g., ensuring data is encrypted or protected from unauthorised access).
- Customer rights regarding their personal information, including how they can access or request corrections to their information.
For Customers and Audiences: Know Your Rights
As a customer or audience member, you may frequently provide personal details such as your name, email address, or phone number to businesses or content creators. While sharing this information may be necessary, you have the right to know how it is being used and stored.
Your Privacy Rights Include:
The right to be informed
You should know what personal information is being collected, how it will be used, and who it might be shared with.
The right to access your information
You can request access to the personal information a business or creator holds about you.
The right to correct inaccuracies
If your personal information is incorrect or outdated, you have the right to ask for it to be corrected.
If you are unsure how your personal information is being handled or feel that your privacy has been compromised, seeking legal advice may be the best course of action.
How Argon Law Can Help
Whether you are a business owner, digital content creator, or a customer concerned about how your personal information is handled, Argon Law can provide expert legal advice tailored to your needs.
From drafting privacy policies to addressing privacy breaches, our team is here to help you navigate the complexities of privacy law.
Contact us today to learn more about how we can assist with your privacy and data protection concerns.