Businesses must act as privacy law lags

As the government’s legislative logjam continues to delay the Privacy Act legislation, Publicis Groupe’s Maurice Riley argues businesses cannot afford to wait for Canberra.

Maurice Riley is the chief data officer of Publicis Groupe Australia & New Zealand

Australia’s delay in privacy reform legislation has left businesses vulnerable as trust in data-driven commerce erodes and data breaches increase.

The changes are set to have an enormous impact on an estimated $94bn in flow-on contribution to the Australian economy. With the federal government facing a legislative logjam, which has pushed back the Privacy Act draft legislation until September, businesses with a growth agenda can’t afford to wait for action from Canberra.

The delays are creating uncertainty for industry and consumers. At best, these delays stall progress in empowering Australians; at worst, they harm the economy.

Businesses can act now to actively have a conversation about protecting data and building consumer trust. These are both key drivers of revenue growth.

Australians are highly aware of the impact privacy laws have on their lives, and the consequences of inaction are clear. While the Edelman Trust Barometer shows that 63 per cent of Australians trust businesses to “do what is right”, the tension between privacy commitments, commercial realities and political agendas is evident.

Google’s reversal on phasing out third-party cookies illustrates the struggle even tech giants face in balancing privacy and profit. What remains through this regulatory mesh is a clear message from Australians: businesses must be proactive on privacy, or risk losing trust and revenue . As revenue and economic growth remain top priorities for executives and government officials, recognising the interconnectedness between privacy and profit is crucial.

Consumer concern around data privacy is undeniable. Nearly nine out of 10 Australians surveyed by Zenith Media’s Imagine Panel viewed data privacy as a concern for their families. Among them are two key groups who are very concerned: families with children and financially optimistic consumers. These aren’t just any segments — they’re economic powerhouses. Together, these cohorts account for over 50 per cent of planned consumer spending at retail stores in the next three months, making their trust essential to driving growth.

Beyond preventing breaches, privacy is about actively building trust with all consumers. Transparent and ethical data practices are key. Savvy consumers now consider how upfront companies are about their data policies, rejecting those who rely on dense legalese or obscure information within their websites and mobile apps.

An AI analysis of the privacy policies of Australia’s 10 most trusted companies, revealed a mix of meticulous compliance and head-scratching moments.

While these policies weren’t playing around when it came to legalities, they weren’t exactly page-turners. They averaged 4600 words in length — an 18-minute read. And it wasn’t just the length. While transparency got a passing grade, the legal jargon was dizzying.

If customers can’t easily understand how their data is being used, trust crumbles, and loyalty follows.

It’s time for companies to remember that privacy policies are more than legal documents; they’re a conversation with customers. Let’s make it one worth having.

The math behind profitable privacy proves it’s worth it: Data Privacy Promises = Incremental Growth (customer loyalty, better brand metrics, customer retention) and Data Privacy-Driven Revenue is greater than Data Theft Recovery Costs. Reports like IBM’s Cost of a Data Breach consistently show the high financial toll breaches take on businesses—from legal fees and customer churn to brand damage. Companies that invest in proactive privacy experiences that every customer can see and feel in every interaction from website design to data ethics — create an environment where consumers are willing to share their data, confident it’s being handled responsibly.

IKEA exemplifies how prioritising customer privacy builds trust. By simplifying their privacy policy, using creative design to explain it, and showing the value of personalised interactions throughout the purchase journey, they empower customers to make informed decisions about their data. This transparent approach fosters loyalty, driving engagement with their loyalty program and app. IKEA proves that investing in privacy enhancements is a sound business strategy, especially in a climate where consumers value savings and data security.

Neither government nor business can afford to lose sight of the privacy issue. It’s the oxygen of digital commerce — often invisible, but vital. Ignoring it leads to consumer mistrust, stifling growth our economy needs. The slow pace in privacy reform gives all of us in the business community a unique opportunity to lead. By investing in data protection, enhancing transparency, and educating consumers about how their data is used, companies can strengthen their market position and gain consumer trust.

Privacy is a new engine of growth. As consumer demand for privacy intensifies, businesses aiming for sustainable growth cannot afford to ignore it. Even if legislative hurdles delay privacy reforms, companies that proactively embrace privacy today can gain a significant competitive edge — addressing an unmet consumer need while building trust, fostering loyalty, and driving business growth. It’s a win-win for everyone: government, businesses, and consumers all benefit.

Maurice Riley is the chief data officer of Publicis Groupe Australia & New Zealand.