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Greenleaf, Graham; Evans, Katrine --- "Privacy Enforcement Strengthens in Australia & New Zealand" [2012] UNSWLRS 4

Last Updated: 9 February 2012

Privacy enforcement strengthens in Australia & New Zealand

Graham Greenleaf, Professor of Law & Information Systems, University of New South Wales

Katrine Evans, Assistant Privacy Commissioner, Office of the New Zealand Privacy Commissioner

Citation

This paper was published at Privacy Laws & Business International Report, Issue 115, February 2012. This paper may also be referenced as [2012] UNSWLRS 4.

Abstract

This article is the first of a series surveying recent Asian and Australasian examples of significant enforcement of data privacy laws. If there are current examples of where privacy laws are achieving significant outcomes in a country, this should make us cautious of the oft-voiced suspicion that ‘privacy laws don't achieve anything’. On the other hand, if such examples are lacking, this raises serious questions. The main sources for such examples are court and tribunal decisions, and the databases of complaint summaries, and annual reports, of data protection authorities.

By ‘significant examples of privacy enforcement actions’ what we mean is as follows. Firstly, the action results from complaints to an independent authority, actions before any Court or Tribunal, or 'own motion' actions by an authority responding to a specific situation. General investigations or reform proposals by authorities are not included. Secondly, the authorities concerned could be Data Protection Authorities (DPAs) or Privacy Commissioners but they could also be telecommunications regulators, financial regulators, government agencies and so on. Independent industry self-regulatory bodies could be included. Thirdly, the result is a significant remedy for an individual or a group of people; or a significant change in (or confimation of) the interpretation of the law with potential remedial benefits; or a significant change in business or government practices.

At present there are well-established data privacy laws covering most aspects of the private sector in nine jurisdictions in Asia and Australasia. This article covers New Zealand and the three Australian jurisdictions. (An article in the next issue will cover the Asian jurisdictions.)

This survey of recent enforcement examples in New Zealand and Australia makes it clear that significant examples of enforcement of privacy laws continue to occur in all four jurisdictions considered, and some examples show the strengthening of particular remedies. However, the mechanisms through which signficant enforcement arises differs a great deal between jurisdictions. In these Australasian examples they include complainant-initiated injunctions, both awards of damages and mediations by Privacy Commissioners, orders by quasi-judicial Tribunals, and suppression orders by Tribunals. One overall factor shared by all four Australia and New Zealand jurisdictions is that payments of financial compensation to complainants are possible and do occur. A comprehensive assessment of enforcement effectiveness would also require statistical information to be considered. Such analysis of enforcement of privacy laws and its effectiveness (covering examples, statistics and mechanisms) is an important aspect of privacy research which is not yet fully developed.

Introduction

This article is the first of a series surveying recent Asian and Australasian examples of significant enforcement of data privacy laws. If there are current examples of where privacy laws are achieving significant outcomes in a country, this should make us cautious of the oft-voiced suspicion that ‘privacy laws don't achieve anything’. On the other hand, if such examples are lacking, this raises serious questions. The main sources for such examples are court and tribunal decisions, and the databases of complaint summaries, and annual reports, of data protection authorities. Such an approach should not be confused with an analysis of the overall effectiveness of enforcement regimes in the countries concerned, or the content of their laws. A more comprehensive analysis must also consider statistical evidence of enforcement and outcomes, but this article only looks at examples where the context of the legal issues and the remedies are known.

By ‘significant examples of privacy enforcement actions’ what we mean is as follows. Firstly, the action results from complaints to an independent authority, actions before any Court or Tribunal, or 'own motion' actions by an authority responding to a specific situation. General investigations or reform proposals by authorities are not included. Secondly, the authorities concerned could be Data Protection Authorities (DPAs) or Privacy Commissioners but they could also be telecommunications regulators, financial regulators, government agencies and so on. Independent industry self-regulatory bodies could be included. Thirdly, the result is a significant remedy for an individual or a group of people; or a significant change in (or confimation of) the interpretation of the law with potential remedial benefits; or a significant change in business or government practices.

At present there are well-established data privacy laws covering most aspects of the private sector in nine jurisdictions in Asia and Australasia (three in Australia, Hong Kong SAR, Macau SAR, Japan, South Korea, Taiwan, and New Zealand). Malaysia also has such a law but it is not yet in force, and the laws in Vietnam and India have only been in force since mid-2011. Thailand has a law only for the public sector. These laws are surveyed by Greenleaf up to October 2011.[1] Other countries have constitutional protections or sectoral laws that also protect privacy. This article covers New Zealand and the three Australian jurisdictions. An article in the next issue will cover the Asian jurisdictions.

New Zealand – Tribunal decisions and complaints

Enforcement action in New Zealand takes several common forms: investigations by the Privacy Commissioner into complaints brought by individuals; judicial decisions from the Human Rights Review Tribunal; and Privacy Commissioner-initiated investigations. Examples from 2010/11 are considered here. Investigations by the Privacy Commissioner into complaints can result in negotiated settlements which take many forms, including apologies to the complainant, changes in agency policies and procedures or compensation.[2] The highest compensation settlement achieved by the Commissioner in 2010/11 was $50,000 for a case involving an improper disclosure. This amount was higher than any compensation award made by the Human Rights Review Tribunal. Other results of significant investigations included:

The Human Rights Review Tribunal has jurisdiction to hear a matter and make a judicial determination[6], provided that the Privacy Commissioner has first investigated the matter. Of the 25 new cases brought to the Tribunal in 2010/11, one of the most significant was Shahroodi v Civil Aviation Authority [2011] NZHRRT 6 (under appeal), where the Tribunal decided that the CAA had improperly refused Mr Shahroodi’s request for access to information about himself. The Tribunal found that because Mr Shahroodi did not have access to the information, he did not have a proper opportunity to state his case before the Director of Civil Aviation decided to cancel his pilot’s licence. The Tribunal also found that Mr Shahroodi had suffered significant distress as a result of the CAA’s failure to provide him with information. It awarded compensation totalling $10,000 – half for loss of opportunity to comment and half for distress. The figure is larger than might have been expected for similar “loss of opportunity” cases a few years ago, particularly as not all the plaintiff’s evidence of harm was accepted. This suggests that the Tribunal is increasing its awards of compensation for failures to provide access to personal information.

New Zealand – The Street View and Buzz investigations

The Commissioner does not have to receive a complaint to investigate an incident, and Privacy Commissioner-initiated investigations (or “CIIs”) sometimes involve an in-depth investigation culminating in a public report or statement. The most significant recent CII report is the Commissioner’s December 2010 report into Google’s collection of information from wi-fi networks in New Zealand during its “Street View” filming operations.[7] The Commissioner found that Google had breached its obligations to tell people that it was collecting MAC addresses and other information about wi-fi networks. Some of that information could be classified as ‘personal information’ under NZ law as it was capable of identifying individuals. Google had a legitimate reason to collect the information (to improve the performance of its location based services), but it could and should have expressly told people that this was part of its Street View operation: Street View was doing more than taking photographs.

The Commissioner also found that Google had no legitimate reason to collect payload information from unsecured wi-fi networks and that the collection was seriously intrusive. From a privacy perspective, it did not matter that Google had collected the information inadvertently. The investigation resulted in Google providing various undertakings to the Commissioner, including to delete the payload information; apologise to consumers; change its internal review processes for products with a significant effect on personal information; undertake privacy impact assessments for any future Street View filming in New Zealand; and regularly consult with the Commissioner about significant product launches that could affect the privacy of New Zealanders.

The investigation had two additional notable features. First, the Commissioner referred the collection of payload data to the NZ Police, in case the collection breached the law on interception of communications. While the Police ultimately decided not to proceed, this shows that the Commissioner will work closely with other relevant agencies if she believes there may have been evidence of significant misconduct or breach of other laws. Secondly, the Commissioner to some extent co-ordinated the investigation with similar investigations in other jurisdictions overseas.[8] Co-ordinated enforcement action – where an agency is given a similar message by a variety of privacy commissioners – can maximise the impact that a small jurisdiction is able to have. Another example in 2010 was the joint letter that ten privacy commissioners, including New Zealand, sent to Google in the wake of its faulty launch of Google Buzz, which exposed contact lists without people’s consent.[9] Joint enforcement action is going to increase and improve in the coming years, in the wake of initiatives such as the Global Privacy Enforcement Network and the APEC cross-border privacy enforcement work. New Zealand is an active member of both initiatives.

Australia – Federal law

Two largely unprecedented developments in the enforcement of Australia’s Privacy Act 1988 occurred in 2011.

The Federal Court decision in Smallbone v New South Wales Bar Association [2011] FCA 1145 resulted in only the second injunction in 20 years being issued under under the Act. An unusual provision in the Act (s98) allows any party to go directly to the Federal Court (bypassing the Privacy Commissioner), but only to obtain an injunction against breach of one of the data privacy Principles. Here, an applicant for ‘silk’ (appointment as Senior Counsel) successfully obtained an injunction to prevent the NSW Bar Association from announcing the results of his application until he was able to access the information on which the decision was to be made (while preserving the anonymity of those commenting on his application) in order for him to see whether any of it was erroneous and if so to decide whether he would further challenge it under the Act. The Bar Association did not appeal.

The Privacy Commissioner has power under s52 of the Act to award compensation and other remedies for breaches of the privacy principles (called ‘determinations’). However, the Commissioner has only once before considered a claim for compensation in making a determination, and in that case (Rummery[10]) there was a successful appeal against inadquacy of the Commissioner’s award of damages. In 'D' and Wentworthville Leagues Club [2011] AICmr 9 the Commissioner held that the Club had interfered with the complainant’s privacy by disclosing the complainant’s membership details and gaming information to the complainant’s ex-partner, in breach of National Privacy Principle 2. The Commissioner ordered that the Club apologise, undertake staff training, and pay the complainant A$7,500 (US$8,084) for non-economic loss but was not satisfied that the complainant suffered economic loss. The Commissioner’s reasoning appears to endorse the view of the Tribunal in Rummery that it would ‘... not go so far as deciding that we must award compensation once a loss is established. However ... once loss is proved, there would need to be good reason shown ... as to why compensation for that loss should not be awarded’, but whether this approach will be followed remains to be seen. Consistent with the few other s52 determinations issued by the Commissioner, the respondent was named.

There were 19 case notes in 2011 of complaints under the Privacy Act 1988 published by the Office of the Australian Information Commissioner[11], of which four resulted in changes to the practices of the organisations complained about:

Australia – Victorian public sector

The Victorian Privacy Commissioner investigates complaints against Victorian public sector agencies, and in 2011 published case notes[13] on four such investigations, of which two are significant:

Where complaints cannot be resolved by the Victorian Privacy Commissioner, they can be referred to the Victorian Civil and Administrative Tribunal (VCAT). During 2011 VCAT did not deliver decisions on any such cases, and nor were there any decisions of the Victorian Supreme Court concerning the Information Privacy Act 2000.

Australia – NSW public sector

There were 38 court or tribunal decisions in 2011 considering the Privacy and Personal Information Protection Act 1998 (NSW) (PPIPA), which covers the New South Wales (NSW) state public sector including local government. Local Area Health Services account for a high percentage of cases going to the Tribunal. The Health Records and Information Privacy Act 2002 (HRIPA) contains similar principles applying to health service providers in both the public and private sectors in NSW. Unless noted otherwise the decisions discussed below are by the Administrative Decisions Tribunals (ADT) of NSW. The examples following illustrate the wide range of remedies available from the ADT.

Conclusions

From this survey of recent enforcement examples in New Zealand and Australia it is clear that significant examples of enforcement of privacy laws continue to occur in all four jurisdictions considered, and some examples show the strengthening of particular remedies. However, the mechanisms through which signficant enforcement arises differs a great deal between jurisdictions. In these Australasian examples they include complainant-initiated injunctions, both awards of damages and mediations by Privacy Commissioners, orders by quasi-judicial Tribunals, and suppression orders by Tribunals. One overall factor shared by all four Australia and New Zealand jurisdictions is that payments of financial compensation to complainants are possible and do occur. A comprehensive assessment of enforcement effectiveness would also require statistical information to be considered. Such analysis of enforcement of privacy laws and its effectiveness (covering examples, statistics and mechanisms) is an important aspect of privacy research which is not yet fully developed.

An article in the next issue will consider recent enforcement examples in Asian jurisdictions with established laws (Hong Kong, Japan, South Korea, Macau and Taiwan), and some other jurisdictions such as Indonesia where there are new examples of enforcement. It will also consider whether any trends in enforcement are apparent across the whole region.


[1] Greenleaf, G 'Major Changes in Asia-Pacific Privacy Laws: 2011 Survey', Privacy Laws & Business International Report, Issue 113: 1, 5-14, October 2011; also available at <http://ssrn.com/author=57970>

[2] The Privacy Commissioner receives nearly 1000 complaints per year, around 30% of which result in settlement of the dispute. In 2010/11, of complaints which the Commissioner found had substance, 90% were settled. The Commissioner publishes case notes about some of the complaints she receives each year, to provide guidance about how she interprets the Privacy Act in given situations. People can subscribe through the website at www.privacy.org.nz to receive case notes automatically (no cost).

[3] Case note 225274 [2011] NZPrivCmr 10: http://tinyurl.com/7okx3s2

[4] Case note 231747 [2011] NZPrivCmr 8: http://tinyurl.com/8xhb8fp

[5] Case note 209742 [2010] NZPrivCmr 21: http://tinyurl.com/89lqlal

[6] The Tribunal’s judicial determination are the source of much of the authoritative privacy jurisprudence in New Zealand. Its decisions are available at <http://www.nzlii.org/nz/cases/NZHRRT/> .

[7] http://privacy.org.nz/google-s-collection-of-wifi-information-during-street-view-filming/)

[8] Linkomes, L ‘Google, Facebook face increased pressure from the regulators’ Privacy Laws & Business International Report, Issue 110, May 2011, 17-18

[9] http://privacy.org.nz/media-release-privacy-guardians-warn-multinationals-to-respect-laws/

[10] Rummery and Federal Privacy Commissioner and Anor [2004] AATA 1221

[11] Available at <http://www.oaic.gov.au/publications/case_notes.html>

[12] For a similar case note from New Zealand in 2011, see case note 221786 [2011] NZPrivCmr 2: http://tinyurl.com/7jrkgc7

[13] http://www.privacy.vic.gov.au/privacy/web2.nsf/pages/case-notes


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