Issue No. 9 - February/March 2003
Privacy a Must when Buying or Selling a Business
Anyone who buys or sells a business that includes a customer database in 2003 may be caught by the Privacy Act, even though the business has a turnover of under $3 million, warns CPA Australia.
"From 21 December, 2002, small businesses that trade in personal information, are related to a large business or provide services under a Commonwealth contract, will need to comply with the Privacy Act," says CPA Business Policy Adviser Judy Hartcher.
"Trading in personal information includes buying or selling a business with a customer database, so businesses should check their compliance obligations before finalising the sale or purchase.
"For instance, anyone buying a business should ensure that customers are advised that their personal details have been transferred to the new owners. Customers also should have the opportunity to remove their personal data from the new owners' database."
When buying or selling a business, small business operators also need to ensure...