A salesperson's laptop, holding unencrypted copies of clients' passports and bank details, is stolen from a car. The agency believes serious harm to those clients is likely. Under the Privacy Act 2020, what must the agency do?
Correct Answer
D) Notify the Privacy Commissioner and affected clients as soon as practicable.
A privacy breach includes unauthorised access to, or loss of, personal information. It is notifiable when it is reasonable to believe it has caused or is likely to cause serious harm. Section 114 requires the agency to notify the Privacy Commissioner as soon as practicable, and s 115 requires it to notify affected individuals (or give public notice) unless an exception applies. Failing to notify the Commissioner without reasonable excuse is an offence with a fine of up to $10,000 (s 118).
Why This Is the Correct Answer
A breach likely to cause serious harm is notifiable to both the Commissioner and the affected people.
Why the Other Options Are Wrong
Option A: Notify the Commissioner within 72 hours, but only if the laptop is not recovered.
The Act sets no 72-hour rule; s 114 requires notice as soon as practicable once a notifiable breach is known.
Option B: Notify only the Police, because theft is a criminal matter and not a privacy breach.
Unauthorised access to or loss of personal information is a privacy breach under s 112, whatever its cause.
Option C: Nothing, if the agency has since changed its passwords and fixed its security.
Section 118(2) says taking steps to address the breach is no defence to failing to notify the Commissioner.
Background Knowledge for Compliance
Source: https://www.legislation.govt.nz/act/public/2020/0031/latest/whole.html
Exam Tip for Compliance
Serious harm likely? Tell the Commissioner and the affected people as soon as practicable.
Common Mistakes to Avoid on Compliance Questions
- •Using an overseas 72-hour rule or thinking a fix removes the duty to notify.
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