Tony Redmond found the council published personal and sensitive information about traveller families and their children in a committee report and on its website.
Redmond's report said the information included medical details, the names and ages of all the children living on the site, and the children's educational needs.
The council has already agreed to apologise to the families, and the ombudsman recommended it also pays £300 compensation to three families who have complained.
Redmond said: "My view is that the council could have chosen to report the information to councillors in anonymised and summarised form, or it could have treated it as exempt information and placed it in part two of the meeting, from which the press and the public are excluded, in order to prevent the widespread circulation of sensitive medical and educational information."
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