- have a turnover of $3 million or above; or
- collect personal information about an individual to provide a service for others (i.e. collecting information about customers for your suppliers).
Most online marketplaces meet at least one of these two criteria.
Personal information includes all information that allows the person to be identified. For example, names, email addresses or phone numbers. This article describes how you can meet your privacy obligations while still collecting the information you need to run your marketplace.
Disclose How You Collect Personal Information
It is important to disclose to your visitors how you will collect and use personal information. This disclosure should be made through three documents:
- Marketplace terms and conditions
Marketplace Terms and Conditions
Your marketplace terms and conditions will apply to anyone who makes a purchase through your website. This usually happens by asking customers to click a checkbox that states their agreement at time of purchase.
The marketplace terms and conditions should also require the customer to agree not to infringe on third parties’ privacy through anything they share or post on the marketplace website. For example, by not posting photos tagged with another person’s name.
Only Use Personal Information for Agreed Purposes
If your policies and terms also set out systems or procedures for protecting the collected personal information, you need to ensure these systems and procedures are actually in place.
To keep these systems and procedures effective, you should update software regularly and provide ongoing privacy training for your staff.
Take Care When Sharing Personal Information Overseas
As a marketplace operator, you may need to disclose visitors’ personal information to overseas sellers. If you disclose personal information to an overseas recipient, you will be liable for an act or practice of the overseas recipient that would breach an APP as if you had breached the APP yourself.
An exception is where a person agrees, via a clause in your marketplace terms and conditions, that:
- they consent to the disclosure; and
- you will not be liable for any breaches of the APP.
However, even with this clause, you should still be careful to whom you disclose your visitors’ personal information. Therefore, when disclosing to an overseas third party you must be confident that they will handle the personal information in line with the APP. This means you need to be:
- aware of who the third party is; and
- assured that they have sufficient procedures in place that will protect personal information.
If you need assistance with meeting your marketplace privacy obligations, call LegalVision’s online lawyers on 1300 544 755 or fill out the form on this page.
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