The Australian government’s proposed reforms to privacy laws have garnered strong opposition from global tech giant Meta. These proposed reforms are driven by the increasing concern surrounding of data collection and data breaches. Meta’s objection to these reforms specifically relates to their ability to utilise direct marketing and targeted advertising tactics within their social media platforms including Facebook and Instagram.

They have argued that these changes would hinder the businesses’ efforts to personalise services for their customers and overall disrupt the functionality of their platforms. As a result of this situation Meta has sent their global director of privacy policy, Melinda Claybaugh, to Australia to engage with government officials and stakeholders to discuss the consequences of these reforms.

Proposed privacy reforms

The Australian federal government aims to revamps existing privacy laws in response to the significant rise in data breaches and online scams. This reform effort is aimed at bringing Australia’s privacy regulations in line with the digital age. The Australian government recent released its report on the 2022 review of the Privacy Act which outlined extensive proposed reforms that aim to strengthen personal information protection and more closely align the legislation with global privacy standards. These reforms intend to maintain the current principles-based approach while expanding the obligations for entities handling personal information. The government aims to strengthen individuals’ control over their information while aligning with standards of the digital age.

DataBench’s founder and managing partner David Christmas who possesses deep expertise in the privacy landscape commented, “After two years of extensive consultation and detailed review of the privacy act, we are on the brink of significant change to the way businesses handle our personal and sensitive data. In my opinion, this is long overdue. I find myself in a unique position being both a business owner and consumer, so I hold a clear understanding of the pressures on both sides, and I can say that both sides are equally important. Business need data to operate however it is not theirs to keep or own and they can’t have it both ways. On the other side consumers want and need services in which they must provide data however they must also take ownership of who and where they place this data. If you don’t trust the provider, it’s best not to share your data”.

Concerns raised by Meta

While the Meta has supported majority of the proposed reforms, they hold strong opposition to reforms related to direct marketing, targeted advertising, and the option to opt-out of seeing personalised ads. The company argued that the proposed definition of targeting was overly broad and potentially subjects benign business behaviours to unnecessary regulations. Furthermore, meta expressed concerns surrounding children accessing their platforms. The lack of personalised ads would mean that children could be exposed to inappropriate content meant for adults and businesses would be wasting resources on reaching irrelevant audiences. They have emphasised the impact that these proposed reforms would have on business and the advertising ecosystem. The company stated personalised advertising contributed $10.2 billion in consumer value and saves $36.5 billion for customers in Australia. They emphasised the critical role of personalised advertising and the significant value it has to businesses and customers.

The future of privacy standards in Australia

Australia’s proposed reforms to the privacy act represent a significant step toward enhancing personal information protection and aligning with international privacy standards. As the government considers feedback and moves towards drafting legislation it is important to find a balance between safeguarding personal information and allowing for innovation and personalised services.

Given his extensive experience, industry expert David Christmas anticipates that the outcome of these reforms will shape the future of privacy standards in Australia and will influence how businesses handle personal information and the rights individuals have over their data. Australia has the opportunity to establish a robust privacy framework that protects individuals’ rights while fostering technological advancements and digital innovation.