A "Memorandum of Understanding" has been signed between ACCC Chairman, Professor Allan Fels and the Federal Privacy Commissioner, Mr Malcolm Crompton, clearing the way for the ACCC to bring its enforcement powers to bear on suspected privacy breaches in the private sector.

The intervention of the ACCC raises the prospect that an organisation that publishes a privacy policy which is found not to conform to the new Privacy Law could be accused of "misleading or deceptive" conduct and face sanctions under the Trade Practices Act.

background:

In a joint statement, the Commissioners said "The MOU provides a framework for co-operation when the responsibilities of the FPC and the ACCC overlap and importantly will allow both agencies to take advantage of opportunities to assist each other with enforcement activities, investigations and litigation, training and education."

"Our organisations will work together to ensure that privacy statements issued by companies to comply with the Privacy Act are not misleading or deceptive," Professor Fels said.

Australian Direct Marketing Assocation (ADMA) CEO Rob Edwards said, "It is unacceptable that, just three months into the new privacy regime, a new regulator has entered the field. The new emphasis on enforcement, investigations and litigation goes against the Government's commitment to a light-touch approach. The Privacy Commissioner has given repeated assurances that he would emphasise education. This calls into question his commitment to that approach.

"Over the past 12 months, businesses have been investing heavily in policies, systems, and procedures to prepare for the new privacy regime. These initiatives have been undertaken in good faith. It is very regrettable that regulators have taken this new tack, especially since we have seen no evidence of market failure."

ADMA action:

ADMA CEO Rob Edwards has written to the Attorney General to express the Association's concern about these developments and to seek assurances that, only three months into the new privacy regime, the Government has not abandoned its light-touch approach to regulating privacy in the private sector.

Source: ADMA Member Bulletin #02-05, 22 March 2002
Please contact ADMA on 02 9368 0366 for further information.