{"id":207914,"date":"2021-07-13T19:00:12","date_gmt":"2021-07-13T06:00:12","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=207914"},"modified":"2021-08-16T15:16:49","modified_gmt":"2021-08-16T02:16:49","slug":"can-i-sell-my-customer-database","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/data-privacy-it\/can-i-sell-my-customer-database\/","title":{"rendered":"I Am Selling My NZ Business. Can I Sell My Customer Database?"},"content":{"rendered":"<p><span style=\"font-weight: 400\">When you want to sell your business, you collate the valuable assets you own to determine your selling price. When selling, one potentially valuable asset is your customer database. Your database collates details about your existing customers, which can be extremely useful for potential buyers. Therefore, it may be a point of value for your business. However, your customer database will contain <\/span><a href=\"https:\/\/legalvision.co.nz\/data-privacy-it\/personal-information-nz\/\"><span style=\"font-weight: 400\">personal information<\/span><\/a><span style=\"font-weight: 400\"> about your clients. Consequently, you need to handle consumer data according to privacy law, which will affect whether you can sell your client database at all. Therefore, this article will explain whether you can sell your customer database when selling your business.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">What Personal Information Does My Customer Database Contain?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Personal information is any data you can use to identify a living person, whether by itself or in combination with other information. This definition is broad and can contain many different kinds of data. Therefore, your customer database will likely vary depending on the industry you are in. Your customer database may include personal information such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">customer names;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">customer delivery addresses;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">email addresses;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">financial information, such as accounts;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">payment history;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">sales history;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">customer preferences<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">mobile numbers; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">past communications identifying the customer.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">A comprehensive customer database allows your business (or a potential buyer) to:&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">identify customer trends;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">track customer loyalty;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">give better customer service;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">target your marketing; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">deal with customer complaints and feedback more efficiently.<\/span><\/li>\n<\/ul>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">To achieve this efficiency, customer databases store a lot of personal data about your clients in one place. For example, an accounting firm\u2019s customer database will include sensitive personal information about their clients\u2019 financial affairs.<\/span><\/p>\n<\/div>\n<h2><span style=\"font-weight: 400\">Meeting Your Privacy Obligations<\/span><\/h2>\n<p><span style=\"font-weight: 400\">To comply with the law, you need to fulfil <\/span><a href=\"https:\/\/legalvision.co.nz\/data-privacy-it\/employee-privacy-obligations\/\"><span style=\"font-weight: 400\">your privacy obligations<\/span><\/a><span style=\"font-weight: 400\"> that regulate how you deal with your database, including how you:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">collect information for it;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">use the information you have collected;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">store and secure your database; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">share this database with other parties.<\/span><\/li>\n<\/ul>\n<div class=\"box box--border-line\">\n<p><span style=\"font-weight: 400\">You should therefore prioritise protecting the personal information of your clients and value their privacy rights. It is your responsibility to ensure your clients\u2019 personal information is secure throughout the selling process.<\/span><\/p>\n<\/div>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    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Subsequently, you can only use the collected data for the reasons you told your customers at that time. Your privacy policy should contain a summary of this information.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">Furthermore, your database should only contain personal information necessary for legitimate business purposes, such as physical addresses for completing delivery. If any of the customer data in your customer database is unnecessary, you should dispose of it securely before sharing it with a third party.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Sharing Personal Information<\/span><\/h2>\n<p><span style=\"font-weight: 400\">If you did not tell your clients that you would use their personal information as an asset when selling your business, you cannot sell your customer database in this way without their consent. When using or sharing personal information, you cannot do so outside of the reason you collected it unless:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">you have permission from the person the personal information is about;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">sharing or using it in this way was within your intended purposes, and you told customers this;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">it is directly related to your original collection purpose; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the law requires it.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Therefore, if you want to sell your customer database as a part of your business assets, you need to get the consent of every customer in that database to do so. If you told customers that you would use their information in this way at the time of collection, then you do not need to get their consent again.<\/span><\/p>\n<p><span style=\"font-weight: 400\">You may contact them by email or perhaps phone them if your database is small enough. If they do not allow you to include their personal information, then you need to take that customer\u2019s details out of your database.<\/span><\/p>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">Be sure to include that you have received customer consent to share their information when pitching your price to buyers. They may be willing to pay more for a database of this kind because it means they do not induce potential privacy liabilities for operating with personal information in this way.<\/span><\/p>\n<\/div>\n<h2><span style=\"font-weight: 400\">Selling Your Customer Database Without Consent<\/span><\/h2>\n<p><span style=\"font-weight: 400\">If you do not get customer consent to include their information in the client database you are selling, you are interfering with their privacy. Therefore, they can complain to the Privacy Commission because you have breached the <\/span><i><span style=\"font-weight: 400\">Privacy Act<\/span><\/i><span style=\"font-weight: 400\">\u2019s principles. You may then face fines or legal proceedings in the Human Rights Review Tribunal.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Your customer database contains the personal information of your clients and customers. Therefore, if you want to sell it, you need to get the consent of the people whose customer data your database contains. If you would like more information or help with your privacy obligations and selling your customer database, contact <\/span><a href=\"https:\/\/legalvision.co.nz\/it-lawyers-lp\"><span style=\"font-weight: 400\">LegalVision\u2019s data, privacy, and IT lawyers<\/span><\/a><span style=\"font-weight: 400\"> on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or fill out the form on this page.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1626155811547\"><strong class=\"schema-faq-question\">Can I sell my customer database as an asset?<\/strong> <p class=\"schema-faq-answer\">You can sell your customer database as long as you have consent from every customer in that database to share their personal information. Otherwise, you run the risk of breaching privacy law.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626155822018\"><strong class=\"schema-faq-question\">What personal information does my customer database hold?<\/strong> <p class=\"schema-faq-answer\">Personal information is anything that can identify a person. Therefore, your customer database will contain various different kinds of personal information, such as customer names, email addresses, and financial details.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>When you want to sell your business, you collate the valuable assets you own to determine your selling price. When selling, one potentially valuable asset is your customer database. Your database collates details about your existing customers, which can be extremely useful for potential buyers. Therefore, it may be a point of value for your<a href=\"https:\/\/legalvision.co.nz\/data-privacy-it\/can-i-sell-my-customer-database\/\">Continue reading <span class=\"sr-only\">&#8220;I Am Selling My NZ Business. Can I Sell My Customer Database?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13236,"featured_media":48,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[13,28],"tags":[25,54,378,583,846],"class_list":["post-207914","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-sale-and-purchase","category-data-privacy-it","tag-small-business","tag-medium-business","tag-privacy-laws","tag-customer-information","tag-data-collection"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Can I Sell My Customer Database? | LegalVision NZ<\/title>\n<meta name=\"description\" content=\"Are you selling your business? 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