Notes from the iappANZ, March 18, 2016

A large proportion of media stories in the privacy space naturally focus on wrongdoings, breaches, non-compliance and generally the shortfalls of privacy laws, standards and regulations. I mean, who wants to hear about organisations doing what the law says they should do? Boring! However, every now and again, I find a story that may reinforce the protection offered by privacy law in a positive light. Last week, after failing to sell Dick Smith as a going concern, receivers Ferrier Hodgson sold the company’s New Zealand and Australian assets, including customer databases to local online entrepreneur Kogan. The customer databases were purported to include at least one million loyalty members.

The sale of customer databases triggers obligations under the privacy laws in Australia and New Zealand. In this case, the liquidator had to make contact with all of the individuals in the database ahead of a sale, and give them the opportunity to elect whether or not their information is included. Dick Smith's receivers and managers sent emails to Dick Smith's customers and subscribers in Australia and New Zealand on Tuesday, offering them the opportunity to unsubscribe from the Dick Smith database by 22 March. And the Australian and New Zealand regulators were very quick to issue statements on the potential sale, putting the liquidators and affected consumers on notice of the privacy implications of the transaction.

Good outcome? Seeking consent minimises potential issues for the receiver or liquidator and it may generate more goodwill among customers and therefore a higher return for the purchase if they are not concerned about a public backlash.

I’d call that a positive light.