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What Is A Privacy Collection Notice?
If your business collects personal information from clients or customers for a specific purpose, you may need a Privacy Collection Notice.
A Privacy Collection Notice is a document provided to individuals that summarises the personal information being collected and the purposes for which it is being collected.
Understanding when you need a Privacy Collection Notice, a Privacy Policy, or both can be complex. We’ll clarify this for you.
When Do You Need A Privacy Collection Notice?
Under New Zealand law, a Privacy Collection Notice is not strictly required for small businesses unless they are handling personal information in a way that poses a higher risk to privacy. This includes businesses that deal with large amounts of personal data, sensitive information, or are publicly reporting agencies.
We’ve discussed Privacy Policies here.
However, it is considered best practice for all businesses to adopt robust privacy practices to protect themselves and their customers.
Some businesses voluntarily adhere to the privacy principles to position themselves as a ‘privacy compliant’ organisation.
If your business falls into this category, the New Zealand Privacy Principles apply to you.
Why Do You Need A Privacy Collection Notice If You Have A Privacy Policy?
To comply with the New Zealand Privacy Principles, you’ll need a Privacy Policy.
A Privacy Policy is a comprehensive document that states how a business collects, uses, and manages personal data, and outlines the rights of individuals regarding their personal information.
The key difference between a Privacy Policy and a Privacy Collection Notice is that the latter specifically details how an organisation manages personal information collected for a particular purpose. For example, a Privacy Collection Notice might explain how personal information is used to address a complaint or to distribute newsletters.
What’s In A Privacy Collection Notice?
Here’s what you can typically find in a Privacy Collection Notice:
- The entity’s identity and contact details: This should include the details of a contact person who handles enquiries and requests relating to the Privacy Act. Alternatively, a generic company email for privacy matters can be provided.
- Facts and circumstances of collection: This covers how, when, and from whom the personal information was collected. It is particularly important to disclose this when the information is obtained from a third party.
- If collection is required or authorised by law: If there are legal requirements for collecting certain information, the relevant legislation should be cited.
- Purposes of collection: Transparency about why you are collecting information is crucial. The Privacy Collection Notice should clearly state the purpose for which the personal information is being collected.
- Consequences for individuals if personal information is not collected: This section should outline any significant outcomes that might occur if the required information is not provided, such as the inability to process a certain application or service.
- Other entities, bodies or persons to which the personal information is usually disclosed: If you regularly disclose the information to another entity, that entity should be named.
- Information about access and correction in the entity’s Privacy Policy: This part will explain how individuals can access and request correction of their personal information held by the organisation.
- Likely cross-border disclosures of the personal information: If applicable, this should indicate whether the information will be shared with recipients in other countries, and if so, where they are likely to be located.
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There is no specific requirement for where a Privacy Collection Notice must be displayed or delivered in New Zealand. It is sufficient to demonstrate that reasonable steps were taken to notify the individual or ensure they are aware of the Privacy Collection Notice.
Navigating New Zealand’s privacy laws and ensuring your company’s compliance can be challenging. At Sprintlaw, we have a team of experienced lawyers that can assist you with drafting or reviewing Privacy Collection Notices.
Contact one of our consultants for a free, no-obligations chat on 0800 002 184 about how we can help with a Privacy Collection Notice and any other legal issues your business may face.
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