Canadian Privacy Amendments Introduced: PIPEDA Improved

Bill C-29, “An Act to amend the Personal Information Protection and Electronic Documents Act” (PIPEDA Amendments), which is intended to strengthen privacy protection, was re-introduced in Parliament on May 25, 2010. The PIPEDA Amendments bolster the definition for a “valid consent” under PIPEDA, making the consent of the target individual who is invited to share her/his personal information valid only if it is reasonable that they have understood the nature, purpose and the consequences of doing so. Reporting requirements for breaches are proposed that are similar to the ones in force in Alberta (see E-TIPS® “Alberta’s Mandatory Reporting for Breach of Information Security Now in Effect” Vol 8, No 23, May 19, 2010). A new section 10.1 will require an organization to report any material breach of security safeguards involving privacy information to the Privacy Commissioner and section 10.2 will also require the organization to notify an individual of a breach of security safeguards if the breach creates a real risk of harm to the individual. Nevertheless, the PIPEDA Amendments also broaden opportunities for the disclosure of personal information. Section 7 has been expanded so that no consent is required for the collection and use of information produced for work purposes, and the use of witness statements for processing or settling an insurance claim. And basic business contact information would be excluded from many of the protections of PIPEDA. Disclosure of information to government institutions and law enforcement in the absence of a warrant, subpoena, or order would be permitted where there exists “lawful authority,” or with reasonable grounds. Disclosure of information to an organization to prevent fraud would also be permitted. Interestingly, under section 7.4, organizations would be prohibited from notifying an individual about the disclosure of their information if the government institution to which the information is disclosed objects. For the full text of the PIPEDA Amendmentsl, see: http://tinyurl.com/32yhscp For press release and backgrounder, visit: http://www.ic.gc.ca/eic/site/ic1.nsf/eng/05596.html For a marked-up electronic version of PIPEDA showing the changes, see: http://tinyurl.com/35cgtz5 Summary by: Lea Epstein