Why Your Business Needs a Privacy Policy

Mirai Legal is proud to support Privacy Awareness Week 2022. This year's theme is Privacy: The Foundation of Trust.

In this Blog Post, we explore three reasons why having a Privacy Policy is essential for your business.

It's Good for your Customers

A critical factor in business success is earning customers' trust.

Consumers are more likely to purchase from a business, and engage in repeat purchases, when the business has earned the trust of the customer.

A clear, professionally-written Privacy Policy – combined with the implementation of good privacy practices – is an important key to earning that trust.

A good Privacy Policy will explain to the customer:

• the kinds of personal information that may be collected and handled (or "processed") by the organisation
• how that information is likely to be used
• to whom the information may be disclosed and for what purposes
• how the individual can interact with the organisation to manage and protect their privacy, and what steps they can take if there's a problem

Most importantly, the presence of a Privacy Policy demonstrates to the individual that the organisation has thought about their customers' privacy and taken steps to manage it.

It's a Legal Requirement

Australian businesses with a turnover of $3 million and above must comply with the Privacy Act 1988 (Cth). Organisations that handle certain types of information must also comply, regardless of their turnover.

Some of the requirements under the Privacy Act include the requirement to:

• develop and publish a formal Privacy Policy
• comply with the 13 Australian Privacy Principles (APPs)

Further, businesses that deal with individuals in the European Union may also be required to comply with the EU's General Data Protection Regulation (GDPR), and ePrivacy Directive.

Failure to comply with legal requirements can land an organisation in difficulties government privacy regulators – including investigations, fines, penalties and potential court action. Poor privacy practices can also lead to loss of reputation and goodwill among consumers.

It's Good for Search Engine Optimisation (SEO)

Search engine algorithms are getting smarter by the minute, and businesses need to adopt best-practice Search Engine Optimisation (SEO) techniques to ensure their websites are discoverable and relevant to potential customers.

Some apps, online marketplaces, social media platforms and search engines – such as Facebook/Meta Business Pages, and Google's My Business – ask you to provide a link to your organisation's Privacy Policy. Providing this sends a good signal and indicates to the tech giants that your business has taken steps to consider and manage individuals' privacy.