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Peter Ford's blog

International Privacy - some myths exposed

Peter FordAustralian business needs to recognise its own interests in international privacy protection and take a more active part in the debate.

The recent partial endorsement by the Australian Law Reform Commission of the APEC approach to privacy protection of personal information that crosses national borders (see media statement of 11 August 2008) is likely to enliven public discussion of options for international privacy protection. Already, Chris Connolly has published a critique of APEC's accountability principle under which the exporter of personal information remains accountable for its privacy protection. ('Asia-Pacific Region at the Privacy Crossroads (2008)', Chris Connolly, Galexia).

It is this principle that, subject to some qualifications, has been adopted in the privacy report of the Australian Law Reform Commission. One of the qualifications is that the exporter should not be accountable where the laws of the receiving jurisdiction are rated as ‘adequate'.

Rating is to be done by the Australian Government which, under current administrative arrangements, means Senator Faulkner supported by the Department of the Prime Minister and Cabinet. Thus, the concept of ‘adequacy', which derives from the European Union's Privacy Directive, enters by the back door.

The Connolly article conveniently summarises the arguments put forward in public commentary on the APEC Privacy Framework. As the former chair of the working group that drafted the Framework, it appears to me that there are three underlying arguments, repeated in the Connolly article, that should not go unchallenged - that implementation of the Framework would be more burdensome than the EU approach, that the EU approach is the only valid one and that the Framework merely reflects the dominance of US business.

The ALRC Report on Privacy

Peter FordIn a digital environment, approval of a data transfer makes about as much sense as approval of an ocean current.

In its preoccupation with a perceived threat to its independence arising out of the recommendation for a private right of action for invasion of privacy, the media commentary on the ALRC's Privacy Report has missed its most significant aspects. 

Among its many recommendations, the following deserve wide public discussion: regulating cross-border data flows; rationalisation of exemptions and exceptions; and uniform privacy principles and national consistency.

Regulating cross-border data flows

The existing law, which is based on the 1980 OECD Privacy Principles, regulates cross-border data flow by requiring an assessment of the level of privacy protection that will be provided to the data in the jurisdiction to which it is being transferred.  While some flexibility is built into the tests, the basic concept is that privacy protection in the receiving jurisdiction should be similar to that in Australia.  This approach was also taken, in a more bureaucratic form, in the European Union's Privacy Directive of 1995.