Impending privacy reforms driving rethink on ad targeting

New legislative tranches will regulate 'targeting' and require explicit consent for third-party data usage.

David Kennedy · Venture Insights13 September 2024Period: September 20244 min read

10 million→

Australians affected by the 2022 Optus data breach

1988→

Year of the original Privacy Act currently being reformed

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Companies covered:

Abstract

The Australian Government has introduced the first tranche of draft changes to the Privacy Act 1988, with more significant reforms due shortly. These changes impose new requirements on personal information holders, specifically targeting advertising platforms. Key provisions include a statutory tort for serious privacy invasions and a 'fair and reasonable' test for data collection. This report analyzes how these reforms will force a review of data handling and digital advertising practices across the Australian market.

Key Takeaways

The Australian Government has introduced the first tranche of Privacy Act reforms, including a statutory tort for serious privacy invasions.
Upcoming legislation will regulate 'targeting' even when data does not uniquely identify an individual, a major shift for ad-tech.
A new 'fair and reasonable' test will apply to all data collections and disclosures, independent of whether user consent was granted.

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Frequently Asked Questions

The 2022 Optus data breach affecting 10 million Australians served as a catalyst for legislative action, forcing an accelerated overhaul of the original 1988 Privacy Act. Public pressure has reached a peak, with 2024 business surveys showing record-high privacy concerns among the Australian population.

No. A new 'fair and reasonable' test will apply to all data collection and disclosure, functioning independently of whether a user has granted consent. This shift, following the 2023 Privacy Act Review, means regulators can penalize practices they deem unfair even if the user clicked 'accept'.

The reforms will regulate 'targeting' even when the data used does not uniquely identify an individual, a significant departure from the 1988 standards. You will now require explicit and unambiguous consent for any advertising or marketing activities that utilize third-party data.

The introduction of a statutory tort for serious privacy invasions creates a direct path for litigation against personal information holders. This new liability framework arrives as the government implements the first tranche of reforms recommended in the 2023 Review.

Impending privacy reforms driving rethink on ad targeting

Abstract

Key Takeaways

Frequently Asked Questions

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