Shoplifting, the 'Wall of Shame' and the Privacy Act

Retail crime costs New Zealand businesses $2.6 billon every year. With Police resources stretched to their limits and reports of shoplifting becoming increasingly common, retailers and other businesses are posed with a difficult question. What can we do about it?

The Wall of Shame

A common option is the “wall of shame”. For many years, retailers have put up boards with photos of suspected shoplifters in an attempt to deter or identify them. This is easier than ever with the ubiquity of security cameras and can be an attractive option for retailers frustrated with repeat shoplifters. But businesses ought to think twice before putting up their own walls of shame in New Zealand.

Collecting Personal Information

The Privacy Act 2020 puts obligations on anyone collecting personal information in New Zealand. Retailers using CCTV or security cameras must inform customers that they are doing so. Usually, this is with a conspicuous sign or notice at the entrance to the shop or business. If your cameras also record audio, your sign or notice should mention this.

Things That Make You Identifiable

“Personal information” is broadly defined and includes photographs and CCTV footage of identifiable people. If a photograph or video includes a person’s face, it more than likely falls into this category. However, just because a person’s face isn’t captured, doesn’t mean they aren’t identifiable. Tattoos can be distinctive and unique too. And in a small town, things like clothing, physique and gait might also make someone identifiable.

Restrictions on Disclosure

If you collect personal information in the course of your business, you can only disclose it for reasons related to the purpose for which you have collected it. For CCTV footage, this may mean sending it to Police when making a complaint about shoplifting, or sharing it through a loss-prevention platform like Auror, in common use by many petrol stations and supermarkets.

Is a ‘Wall of Shame’ a Breach of Privacy?

A “wall of shame” on the other hand, runs the risk of falling foul of the Privacy Act. The Office of the Privacy Commissioner recently put out guidance advising against publishing CCTV footage or stills of suspected shoplifters. If you or your business is found to have breached the Privacy Act, The Human Rights Review Tribunal has the power to impose fines of up to $350,000, not to mention the time, stress and costs involved in defending a claim.

If you are a small business owner or operator concerned about shoplifting and your obligations under the Privacy Act, our experienced and friendly team is happy to assist.

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