The father complained to the shop for unfairly branding his daughter as a shoplifter, leaving her feeling humiliated in their small community.
The manager defended her actions on the shop's Facebook page and blocked the father from commenting in his daughter's defence.
The father took the matter to the Office of the Privacy Commissioner, which found that the shop manager had made two breaches under the Privacy Act.
The office found the Facebook Wall of Shame was for embarrassing people in photos, which was not consistent with collecting personal information for security reasons.
It also found that personal information was disclosed without reasonable grounds for doing so.
During dispute resolution, the shop offered part-time employment to the girl and money for the emotional harm and humiliation she suffered.
The girl rejected the offer.
The photos were eventually taken off the Facebook page and the parties reached a resolution.