With consumers growing increasingly concerned about the security of their personal information, many business owners have been contacting us recently about whether or not they are legally required to have a Privacy Policy. While we've all seen Privacy Policy hyperlinks at the bottom of website pages, a lot of business owners get confused as to exactly what it is and when you need one.
To put it simply, a Privacy Policy is a legal document that sets out how you gather, use, and manage the data of your customers.
If you carry on a business with an annual turnover of more than $3 million, then you must have a Privacy Policy in place.
However, even if your annual turnover does not exceed $3 million, you will still be legally required to have a Privacy Policy in certain situations.
One of the most common situations is where you are a contracted service provider for a Commonwealth contract. For example, if you are in the construction industry and occasionally perform work under a contract with the Commonwealth Government, you should have a Privacy Policy.
Another common situation is where you provide a health service to one or more individuals and hold their health information. This means that doctors’ clinics, health service providers, gyms, weight loss clinics, personal trainers, childcare centres, and private schools will usually be required to have a Privacy Policy, even if their annual turnover is less than $3 million.
If you are required to have a Privacy Policy, it is important that your policy is properly drafted as there is a long list of information that the policy must contain.
However, even if you are not legally required to have Privacy Policy, it is important to know that some businesses choose to put one in place anyway. This sends a message to customers that you care about their private information and can lead to an increase in consumer confidence and trust.
If you are a business owner and would like to discuss getting a Privacy Policy for your business, please contact our friendly Commercial Law team on 1800 650 656. We're here to help!
Aaron Strickland