ADMA critical of plans for compulsory data breach notifications

CEO Jodie Sangster lambasts Australian Government for plans to impose mandatory data breach notifications on top of coming privacy laws and claims they threaten Australian business prosperity

The chief of the Association for Data-driven Marketing and Advertising (ADMA) has lambasted Federal Government plans to impose compulsory data breach notifications as a threat to the prosperity of hundreds of thousands of Australian businesses.

The data breach notification bill, officially known as the Privacy Amendments (Privacy Alerts) Bill 2013, had its first reading in parliament last month. If passed, it was originally expected to come into legislative effect in March 2014 alongside the Australian Privacy Principles. The bill will require government agencies and private organisations to notify customers of serious data breaches relating to personal, credit reporting, credit eligibility or tax file number information as they occur.

ADMA however anticipates the bill could be referred to a Senate Committee later this week and could pass early next week given the government controls the committee.

ADMA CEO, Jodie Sangster, claimed compulsory data breach reporting will impose more layers of regulation on Australian businesses, potentially causing administrative overload and impeding their ability to be globally competitive.

“This is ill-considered law,” she said. “It comes at a time when businesses large and small are already grappling with the most extensive changes to privacy legislation seen in the last 10 years. And now the government intends to impose yet more legislation without even considering the impact on business.

“Not only are there significant new compliance requirements under the recently adopted Privacy Law, under this new law businesses will face mandatory breach reporting.”

According to Sangster, the industry already has clear and comprehensive guidelines on data notification breaches that are working well, and that companies have been responsive to these. She also questioned the lack of clarity around what ‘serious harm’ meant, especially given the threat of up to $1.7 million fines for non-compliance.

“There is a danger that businesses will err on the side of caution and over-report data breaches,” she continued.

In a recent speech, Attorney General Mark Dreyfus cited a report from McAfee claiming 21 per cent of Australian businesses had suffered data breaches. Sangster noted more than 2.1m businesses were trading in Australia last year, meaning the number of potential data privacy breach investigations could reach 450,000 – an unworkable figure for businesses, consumers and the regulator.

“There is no evidence of systemic failure to justify this kind of proactive reporting regime,” Sangster claimed. “If the Government is going to make any changes to the current regime it needs to go through proper consideration and consultation. Businesses have enough on their plate trying to prepare for new privacy laws coming into effect in a matter of months. Let’s get that right and then we can look at what more needs to be done. What’s the big rush?

“This will have negative economic consequences for the country at a time when the Government should be looking to support business and boost the wider economy,” she added.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Why customer experience driven growth is set to take off

Our overall brand perceptions are invariably shaped by our experiences. And loyal customer relationships can be severed in moments by a negative service interaction.

Consistency and conversation: How branding and advertising can work better together

Advertising and branding are two of the most visible outputs of marketing, which is why getting them right is so important. However, too often the line between branding and advertising becomes blurred. This means advertising activity can be out of sync with brand, resulting in poor results for both functions.

Dan Ratner

managing director, uberbrand

Putting your brand on the Love Index

How much do your customers love your brand, product or service?And more importantly, why?

Bronwyn van der Merwe

Managing director, Accenture Interactive

The frequent flyer programs are the new profit machines for airlines all over the world, as they have morphed to be mass marketing machin...

Steve@iFLYflat

Velocity frequent flyers program strong performer in mixed half-year for Virgin

Read more

Hi Jennifer, thanks for sharing these info regarding the digital marketing trends.I've created a related video to this topic, would you m...

Fabio Carry

Predictions: 17 digital marketing trends for 2017

Read more

Great news. Marketing automation can be very useful for companies at various stages of development. With so many tools out there it's bet...

Ben

How HBF rolled out marketing automation in eight months

Read more

I read a report that the business sector in Australia as a whole have yet to fully harness and see the proactive change that predictive a...

Alex Martin

Report: Predictive analytics, IoT, machine learning battle it out for marketing dollars

Read more

today in this digital age customer insights is one of the channel which can benefit customer a lot. It opens up door for personalized mar...

Bifty Alex

Building customer insights in the data and digital age

Read more

Latest Podcast

More podcasts

Sign in