ANZ Dashboard Digest

Legislation Presents Risk to Offshore Cloud Computing

PRIVACY LAW—AUSTRALIA

October 15, 2010

Legislation now being considered by the federal government could have serious repercussions for organisations hosting data offshore or embracing cloud computing, ITNews reports. The pending legislation would revise Privacy Principle 8 by requiring that any country hosting data outside national borders has privacy protections equal to Australia's Privacy Principles, the report states. One expert says organizations would be wise to conduct due diligence before outsourcing to foreign cloud computing platforms, the report states. "If it doesn't take those steps to make sure this company is going to look after the data in the same way, and there is a breach, the Australian company, under the exposure draft, will be liable for the breach," he said.
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