Businesses could face hefty fines under Canada’s new privacy law



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The federal government is threatening to impose fines that could run into millions of dollars on private companies that violate the privacy of Canadians.

The Minister of Innovation Navdeep Bains today introduced the Law on the implementation of the Digital Card, officially called the “Law to enact the Law on the protection of consumer privacy and the Law on the Court for the protection of personal information and data and to make consequential changes and related to other laws “. It represents one of the biggest changes in Canadian privacy law in decades.

If the bill is passed, companies could face fines of up to 5% of global revenue or $ 25 million, whichever is greater, for more serious offenses. Bains said the legislation provides the heaviest fines among the privacy laws of the G7 nations.

“The fines are meant to guarantee accountability,” Bains told reporters.

The legislation would also give the Federal Privacy Commissioner powers of order – something Privacy Commissioner Daniel Therrien has long called for – including the ability to force an organization to comply and order a company to stop collecting data or use of personal information.

Bains said the commissioner would also be able to recommend fines to a new Data Protection and Personal Information Court, which will impose administrative fines and hear appeals against orders issued under the new law.

According to the text of a government press release, the legislation would also give Canadians the ability to demand that their personal information online be “destroyed”.

Consent rules

The federal government has signaled a more user-friendly system since it first launched the idea of ​​a digital card.

if the bill is passed, companies should obtain customer consent in plain language – not a long, jargon-like legal document – before using their personal data.

The Canadian Internet Registration Authority, the non-profit agency that manages the .ca Internet domain, has praised the new bill.

WATCH | Bains explains how fines would be imposed if companies violate new privacy legislation

Innovation Minister Navdeep Bains presented new privacy legislation to the House of Commons today. 1:25

“Trust is critical to the digital economy and critical to a well-functioning Internet. Canadians need to be able to have confidence that their personal data will be protected and not misused,” CIRA President Byron Holland said in a statement. to the media.

“Companies that handle huge amounts of personal data must be held accountable for protecting that data, be transparent about how they use it, and face the real consequences if they break the trust of their users.”

Conservative MP James Cumming, a critic of the party’s innovation, science and industry, said if liberals really cared about Canadians’ privacy rights they would ban Chinese telecom giant Huawei from operating in Canada.

“While other countries have taken decisive action to defend the privacy of their citizens and banned Huawei, Trudeau’s liberals have failed to make a decision and defend the privacy of Canadians. There is no excuse for this delay by the Trudeau government. , “he wrote in a statement.

“When it comes to liberal legislation, the devil is always in the details. Conservatives will review legislation to ensure it protects privacy without imposing burdensome regulations on small businesses that are struggling to keep their doors open during the second wave of the pandemic.”

Canada already has two privacy laws. The Privacy Act covers government agencies and federally regulated industries, while the Personal Information Protection and Electronic Documents Act applies to private sector organizations.

Statistics Canada said around 57% of Canadians online reported experiencing a cybersecurity incident in 2018.

WATCH | Powers of Bains on Privacy Commissioner

Industry Minister Navdeep Bains explains the new investigative powers the Privacy Commissioner will have under the new Consumer Privacy Protection Act. 0:43

The bill is a “big win for privacy in Canada,” said Laura Tribe, executive director of OpenMedia, which has long pushed for stronger laws.

“For years, people have been asking the government to increase protections for our digital privacy, to no avail,” he said.
“Consequently, the protection of data and privacy of Canadians was an afterthought for many companies, knowing that there were no significant penalties or consequences for bad behavior.”

The group noted that legislation states that consent is not required when an organization does not have a direct relationship with a person, which could weaken protections.

The bill is a step in the right direction, said Jim Balsillie, founder of the Center for Digital Rights. “However, what seems to be missing is a clear recognition of privacy as a fundamental human right.”

Increased bureaucracy

Goldy Hyder, president of the Business Council of Canada, said the legislative proposals set clear rules to protect consumers, foster innovation and strengthen Canadians’ confidence in the emerging digital economy.

BC Information and Privacy Commissioner Michael McEvoy told CBC News that while the bill is a good start, it has issues with how it limits a privacy commissioner’s authority to recommend to a court that a company is fined for breaking the law.

“It seems to me that there is no reason why the commissioner should not have the power to administer those fines – subject, of course, to the courts,” he said.

McEvoy said requiring a court to review a commissioner’s recommendation to impose a fine adds an additional layer of bureaucracy that puts people one step further from getting justice.

He said he likes the provision in the bill that would require privacy firms to declare in simple, easy-to-understand language how they collect information and how they use it.

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