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ARTICLE · 22 MAY 2017

Mandatory data breach notification obligations become law in Australia – issues for franchisors to consider

Affected franchisors should begin preparing to comply with these mandatory data breach notification obligations now.

AustraliaPrivacy

On 13 February 2017 the Privacy Amendment (Notifiable Data Breaches) Bill 2016 (Bill) was passed by the Federal Parliament. The Bill received Royal Assent on 22 February 2017 and will take effect from 22 February 2018, unless an earlier commencement date is proclaimed. The Bill amends the Privacy Act 1988 (Cth) (Privacy Act) to introduce a new obligation for the occurrence of an "eligible data breach" to be notified to the Australian Privacy Commissioner and to affected individuals.

Mandatory data breach notification obligations

Once the provisions of the Bill come into effect, entities that are required to comply with the Privacy Act will become subject to mandatory data breach notification obligations. Entities that must comply with the Privacy Act include private sector organisations with an annual turnover of more than $3 million, so many franchisors will be required to comply with the new data breach notification obligations. If one company in a corporate

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