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| Confidentiality over the internet |
| A recent decision of the NSW Supreme Court illustrates that employers need to take care when posting information on their website. |
In EPP v Levy, Barrett J considered whether information that is available on the internet loses its quality of confidentiality and falls into the public domain. |
In this case, the plaintiff ran a business where it introduced suppliers to small businesses that were in need of goods and services, on terms that were more favourable to the buyer than could be obtained elsewhere. One of the benefits of membership was that members were given an online presence on the plaintiff's website, detailing their business and product. |
The plaintiff sold memberships through agents. The defendants were agents of the plaintiff in the Central Coast area. The defendants entered into a confidentiality deed and an agent's contract. The confidentiality deed provided that unless information which related to the business of the plaintiff was made publicly available, then it could not be disclosed or used for purposes other than the promotion of the plaintiff's business. |
In October 2000, the defendants' agency was terminated. Both before and after their termination the defendants approached members of the plaintiff's business offering a competitive service. |
20% of the members the defendants approached were listed on the plaintiff's website. |
Barrett J strongly asserted that "everything which is accessible through resort to the internet (sic) is in the public domain". |
Barrett J, however, did not rule out the possibility that information available on a website but "secured" through a password or other security system may not be considered as in the public domain. |
This case illustrates that businesses should:
- check all information posted on their website;
- monitor all future content posted; and
- make employees aware that all information posted on the Company's website will lose its quality of confidentiality.
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