In today’s digital age, safeguarding personal information is crucial for small business owners. Ensuring the privacy and security of this information not only protects your customers but also helps you comply with legal requirements and build trust with your clients.
As the collection and use of PII has increased, the need for business owners to put in place measures to protect PII is critical.
What is PII and why is protecting it important?
PII stands for Personally Identifiable Information. It includes any information that can be used to identify an individual, either directly or indirectly. This can include names, addresses, phone numbers, email addresses, social security numbers, and even IP addresses. Protecting PII is essential for several reasons:
- Legal Compliance: In Australia, the Privacy Act 1988 governs how businesses handle personal information. Small businesses with an annual turnover of more than $3 million, health service providers, and businesses that trade in personal information are required to comply with the Act.
- Customer Trust: Customers expect their personal information to be handled responsibly. Demonstrating a commitment to privacy can enhance your reputation and build trust with your clients.
- Cybersecurity: Protecting PII helps prevent data breaches, which can lead to identity theft, financial loss, and damage to your business’s reputation.
First Step – Develop a Privacy Policy
There are several actions that small business owners can make to protect PII, the first step is to develop a Privacy Policy, also known as a Policy Statement.
A robust privacy policy clearly outlines what information you collect, how you use it, store it and how you protect it. It serves as a commitment to transparency and accountability, informing customers and stakeholders about their rights and the measures taken to safeguard their data. Privacy statements are not just legal requirements; they are also essential for building trust with customers and stakeholders.
Key Components of a Privacy Statement
- Data Collection: This section should detail what types of PII are collected and how they are collected.
- Data Use: Explain how collected PII is used. Including primary uses, such as fulfilling orders or providing services, as well as secondary uses, like marketing or research.
- Data Sharing: Disclose whether PII is shared with third parties, and if so, under what circumstances. This might include sharing data with service providers, business partners, or legal authorities.
- Data Security: Outlines the measures taken to protect PII from unauthorised access, breaches, and other security threats. It might include information about encryption, access controls, and regular security audits.
- User Rights: Individuals have rights regarding their PII, such as the right to access, correct, or delete their data. Inform users of their rights and provide instructions on how to exercise them.
- Contact Information: Providing contact details for privacy-related inquiries or concerns is essential.
- Accessible: Make sure your privacy policy is easily accessible on your website
Need help developing a Privacy Policy for your business?
Let’s face it, drafting up a privacy policy sounds time consuming and well, as exciting as watching paint dry on a winters day.
Thankfully help is at hand! Business Victoria have a template that can be customises to fit your business needs. It can be found here Privacy policy template | Business Victoria
In Summary
PII is an important responsibility for small business owners. By understanding what PII is and implementing a robust privacy statement for your business, you’ve begun the first steps in safeguarding your customers’ and stakeholders’ personal identifiable information.
We’ll explore further steps a small business can take to protect PII in future blog posts.
Feel free to contact us if you need more information or have questions about protecting PII in your business.
