Here’s how changes to PIPEDA would work

For the London Free Press – July 8, 2013 – Read this at lfpress.com

The Privacy Commissioner of Canada (OPC) recently released a report recommending reforms to the Personal Information Protection and Electronic Documents Act (PIPEDA). PIPEDA is the privacy legislation that governs private-sector privacy generally in Ontario and many other provinces.

The report noted that, “Ninety per cent of the data that exists in the world today has been created in the last two years,” and PIPEDA needs to evolve.

The report highlighted four recommendations.

1: Strengthen enforcement and encourage greater compliance

Statutory damages (meaning set damages without any requirement of proof) for certain contraventions of PIPEDA. The report cites the Copyright Act as a successful example of a statutory-damages regime.

Order-making powers to give the Commissioner the ability to issue a binding order to either enforce an action or prevent one from being committed. At present, the Commissioner can only recommend this type of action.

Administrative monetary penalties (AMPs) are suggested as a means of bringing organizations into compliance with PIPEDA. AMPs are similar to fines, but would be assessed directly by the Commissioner.

Why the OPC wants this: “It is legitimate to question how a small entity with limited resources, such as the OPC, can attract the attention of these companies and proactively encourage them to comply with PIPEDA when the reality is that there are very limited consequences for contravening Canadian privacy law.”

2: Shine a light on privacy breaches

Require organizations to report breaches of personal information to the Commissioner and to affected individuals.

Why the OPC wants this: Some organizations voluntarily report and inform individuals of privacy breaches. Some organizations do not. Those that do voluntarily report may face negative financial and reputational consequences while those that do not report may escape any form of recourse. This “creates an uneven playing field for organizations.”

3: Lift the veil on authorized disclosures

PIPEDA allows disclosure of personal information to a government institution without the knowledge or consent of the affected individual, upon request. Organizations may, but don’t always, challenge or refuse these requests. The OPC would require organizations to maintain a record of disclosures to government and make it publically available.

Why the OPC wants this: Canadians seeking access to their personal information would be able to find out if their information had been disclosed. There is no transparency or clear rules about what information can and should be provided to government institutions without a court order.

4: Walk the talk

Enforceable agreements would force an organization, at the end of a privacy investigation, to agree with the Commissioner’s recommendations and to comply within a set time period.

Make accountability provisions subject to review by the Federal Court.

Why the OPC wants this: Monitoring and analyzing a company’s actions are just as time-consuming as the Commissioner’s investigations.

http://harrisonpensa.com/lawyers/david-canton

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