Abstract

This paper will investigate whether the Australian legal and regulatory framework sufficiently addresses cybersecurity concerns particular to the smart home. Specifically, the paper will analyse the extent to which the introduction of the data breach notification scheme in Australia will apply to smart home device manufacturers regulated by the federal Privacy Act 1988 (Cth) regarding device breaches. By examining Australian Privacy Principle 11 and the introduction of mandatory data breach notification, the paper aims to determine whether the Australian privacy model of Principles Based Regulation is capable of providing a market-based solution to cybersecurity concerns in the smart home.

Highlights

  • The law has traditionally recognised the home as a private and passive space, wherein there is a reasonable expectation of privacy.[1]

  • The paper will analyse the extent to which the introduction of the data breach notification scheme in Australia will apply to smart home device manufacturers regulated by the federal Privacy Act 1988 (Cth) regarding device breaches

  • By examining Australian Privacy Principle 11 and the introduction of mandatory data breach notification, the paper aims to determine whether the Australian privacy model of Principles-Based Regulation is capable of providing a market-based solution to cybersecurity concerns in the smart home

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Summary

INTRODUCTION

The law has traditionally recognised the home as a private and passive space, wherein there is a reasonable expectation of privacy.[1]. By examining Australian Privacy Principle 11 and the introduction of mandatory data breach notification scheme, the paper aims to determine whether the Australian privacy model of PrinciplesBased Regulation is capable of providing a market-based solution to cybersecurity concerns in the smart home. Focus is placed on the theoretical underpinning of Australia’s model of Principles-Based Regulation, and its application into Australian Privacy Principle 11 and the introduction of the mandatory data breach notification scheme. It is stated that Australian Privacy Principle 11 is unlikely to apply in the smart home environment, and so the introduction of the mandatory data breach notification scheme is analysed to determine whether the scheme may be of potential relief for consumers of smart home devices. The application of smart home device data breaches to a Principles-Based Regulation approach does not provide a clear market-based solution to the joint rise in the smart home market and the increasing sharing of data between internet connected devices and platforms

A Background
Collection and Consolidation of Information
B Cybersecurity Threats to the Smart Home
Data and Identity Theft
Device Hijacking
Ransomware
LEGAL RESPONSES TO THE SMART HOME
A Principles-Based Regulation
B Australian Privacy Principle 11
Such Steps as are Reasonable in the Circumstances
Destroy or De-Identify Information
C Mandatory Data Breach Notification Scheme
Data Breach
Serious Harm
Exceptions
Existing Criticisms of Mandatory DBN
A Does Data in a Smart Home Device Constitute ‘Personal Information’?
Australian Privacy Principle 11
CONCLUSION
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