Personal Information Protection and Electronic Documents Act (PIPEDA)
Overview
The Personal Information Protection and Electronic Documents Act (PIPEDA), effective since January 1, 2001, is Canada’s federal privacy law for private sector organizations, which governs how private sector organizations across Canada collect, use, and disclose personal information in the course of commercial activities. The Act balances an individual’s right to privacy with the needs of organizations to collect and use personal data for legitimate business purposes.
Regulation Summary
Timeline
- April 13, 2000: PIPEDA received Royal Assent.
- January 1, 2001: PIPEDA Part 1 came into effect, applying to federally regulated organizations.
- January 1, 2004: PIPEDA became fully enforceable for all private-sector organizations engaged in commercial activities in Canada.
- August 19, 2024: Latest amendments implemented, strengthening data breach notification requirements.
What Businesses Are Affected
- Private sector organizations conducting commercial activities in Canada.
- Organizations handling personal information that crosses provincial or national borders.
- Federally regulated businesses, such as banks, airlines, and telecommunications companies.
Exemptions
- Provincial Laws: Organizations in provinces with substantially similar privacy legislation, such as British Columbia, Alberta, and Quebec.
- Personal Use: Personal data collected for non-commercial purposes, such as personal correspondence.
- Journalistic, Artistic, or Literary Purposes: Certain exemptions apply to uphold freedom of expression.
Responsibilities for Businesses
Under PIPEDA, businesses must comply with the 10 Fair Information Principles:
- Accountability: Assign a privacy officer to oversee compliance with PIPEDA.
- Identifying Purposes: Clearly identify the reasons for data collection at or before the time of collection.
- Consent: Obtain informed and valid consent for the collection, use, or disclosure of personal data.
- Limiting Collection: Limit data collection to what is necessary for the identified purposes.
- Limiting Use, Disclosure, and Retention: Use, disclose, and retain personal data only as needed for specified purposes.
- Accuracy: Ensure personal data is accurate, complete, and up-to-date as necessary.
- Safeguards: Protect personal data through appropriate security measures.
- Openness: Be transparent about privacy policies and practices.
- Individual Access: Provide individuals with access to their personal data and allow them to request corrections.
- Challenging Compliance: Establish procedures for addressing complaints and questions regarding privacy compliance.
Additionally:
- Transparency: Maintain accessible and clear privacy policies.
- Security Safeguards: Protect personal data against loss, theft, and unauthorized access.
- Access and Correction: Allow individuals to access and correct their personal data.
Specific Responsibilities for Website Owners
- Cookie Consent: Inform users about cookies and obtain their consent where required.
- Privacy Policies: Publish user-friendly privacy policies.
- Data Breach Notification: Notify affected individuals and the Office of the Privacy Commissioner of Canada in the event of a breach posing a real risk of significant harm.
Additional Requirements
- Retention and Disposal: Retain personal data only as long as necessary and securely dispose of it.
- Cross-Border Transfers: Ensure adequate protection for personal data transferred internationally.
- Breach Reporting: Report data breaches to the Office of the Privacy Commissioner of Canada without unreasonable delay.
Data Subject Rights
- Access: Request access to personal data.
- Correction: Request correction of inaccurate or incomplete data.
- Withdrawal of Consent: Withdraw consent for future data use.
- Complaints: File complaints with the Office of the Privacy Commissioner of Canada regarding potential violations of PIPEDA.
Enforcement
- Overseen by the Office of the Privacy Commissioner of Canada.
- Penalties: Fines of up to CAD $100,000 for organizations (approximately USD $74,000).
Questions?
If you would like to learn more, our compliance experts are happy to support you.
Leave us a Messagesupport@clym.io
+1 980 446 8535 +1 866 275 2596