issue:
Several Australian Direct Marketing Association (ADMA) members have complained of receiving incorrect legal advice that private sector organisations will no longer be able to collect, use or disclose customer data without the express consent of customers. The problem has been compounded by erroneous reports in the news media.
background:
In a recent speech to the Perth Branch of ADMA, CEO Rob Edwards pointed to 10 myths currently circulating about the new Federal Privacy Law. Among them is the myth that an organisation needs the consent of the individual to collect information about them. (Consent is only necessary where the information is "sensitive" as defined by the Act.)
The NPPs require certain details to be provided to individuals at the time personal information is collected about them. These details include: who you are, why you are collecting the information, the types of organisation you may be disclosing the information to, any consequences of not providing you with the information, and their ability to get access to the information.
If it is not practicable to provide these details at the time of collection (i.e. if the information was collected over the telephone) organisations can provide the required information "as soon as practicable after".
There is NO requirement to obtain their consent if you intend to use or disclose the information for the primary purpose that you collected it. There is also NO need to get their consent if you intend to use or disclose the information for a "secondary purpose" that is (a) related to the primary purpose of collection, and (b) within their "reasonable expectation."
If your intended use or disclosure of the information is unrelated to the reason it was collected and outside the person's reasonable expectation, you can still use or disclose it as long as you have given them proper notice at the time of collection (as indicated above) and a chance to "opt-out" before using or disclosing it.
If it was impracticable to give them a chance to opt-out before using information you had collected for some other purpose, you can still use the information for direct marketing as long as you include an opt-out each time (as well as meeting other conditions in NPP2.1c).
Source: ADMA Member Bulletin #047, 7 March 2002
Please contact ADMA on 02 9368 0366 for further information.