3.2. Platform Regulation, Targeted Profiling, and the Fair and Reasonable Test
The regulatory framework governing digital platforms reveals a persistent structural tension between commercial data monetisation models and the fundamental protection of young users. In evaluating systemic deficiencies within Australian data protection governance, the Australian Privacy Foundation (2019) argues that regulatory mechanisms must extend economy-wide to curtail commercial platform practices that inherently undermine user autonomy and privacy. When applied to younger demographics, traditional notice-and-consent mechanisms consistently fail because cognitive developmental vulnerabilities prevent minors from assessing complex algorithmic tracking and long-term data collection risks. Consequently, shifting regulatory responsibility from individual consumer self-management to affirmative data processor duties represents a necessary conceptual transition for child safety. As articulated in policy debates surrounding statutory reform, establishing an overarching requirement that data handling must be fair and reasonable under an objective test serves as a vital safeguard against exploitative platform behaviour (Submission to the Australian Federal Attorney-General, 2023). This objective standard ensures that aggressive automated profiling and behavioural targeting cannot be legitimated merely through unread terms of service or contrived consent agreements. By mandating that the substantive purpose of data processing must withstand independent scrutiny, the proposed reforms directly challenge surveillance business models that commodify interaction data. Furthermore, expanding the statutory definition of personal information to encompass individuation prevents digital platforms from evading regulatory compliance through technical claims of de-identification (Submission to the Australian Federal Attorney-General, 2023). Integrating these rigorous, enforceable benchmarks transforms the Privacy Act from a passive procedural disclosure framework into a robust substantive safeguard for vulnerable young Australians.