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    Privacy Commissioner of Canada Sets Out Targets for PIPEDA Reform

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    Thursday May 23, 2013
    Privacy Commissioner of Canada Jennifer Stoddart this morning set out her office's goals for PIPEDA reform. The last attempt to reform the private sector privacy law stalled in the House of Commons with Bill C-12 still technically alive (having been sitting at second reading for months) but destined to die once the government hits the legislative reset button in the summer. The five-year mandatory review of PIPEDA is now years behind schedule, so Stoddart's attempt to kick-start the process is a welcome development.

    The PIPEDA report focuses on four areas of reform: stronger enforcement powers, mandatory security breach disclosure, increased transparency on personal information disclosures, and heightened accountability. In particular, the OPC is calling for:
    • Reform PIPEDA to provide for stronger enforcement powers. These could include statutory damages (administered by the Federal Court); or giving the Commissioner the power to make orders; or affording the Commissioner with the power to impose administrative monetary penalties; or a combination of the above;
    • Require organizations to report breaches of personal information to the Commissioner and to notify affected individuals, where warranted, so that appropriate mitigating measures can be taken in a timely manner;
    • Require organizations to publicly report on the number of disclosures they make to law enforcement under paragraph 7(3)(c.1), without knowledge or consent, and without judicial warrant, in order to shed light on the frequency and use of this extraordinary exception; and
    • Modify the accountability principle in Schedule 1 to include a requirement for organizations to demonstrate accountability upon request; to incorporate the concept of “enforceable agreements”; and to make certain accountability provisions subject to review by the Federal Court.
    The report is a great start, but will require leadership from the Minister of Industry that has to date been absent.
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    Ethics Committee Releases Study on Privacy and Social Media

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    Tuesday April 23, 2013
    The Standing Committee on Access to Information, Privacy, and Ethics has released its study on privacy and social media. The report includes recommendations for new Privacy Commissioner guidelines. The NDP supplemented those recommendations with nine additional legislative proposals that include mandatory security breach disclosure, order making power for the Privacy Commissioner of Canada, and the inclusion of privacy issues as part of a national digital economy strategy.
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    NDP MP Charmaine Borg Tries To Kickstart Canada's Dormant Privacy Reform

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    Wednesday February 27, 2013

    As reports of yet another government security breach emerge, NDP MP Charmaine Borg has at least tried to kickstart the government's dormant private sector privacy reform efforts with a private member's bill that would add mandatory security breach disclosure requirements to the law along with new order making power. The government's own privacy reform bill - Bill C-12 - has languished for years with no real effort by Industry Minister Christian Paradis to move it forward. Moreover, the bill has some serious faults, with no penalties for security breach, no update to the Privacy Commissioner's powers, and provisions that make organizations more likely to disclose personal information without warrant during an investigation.

    Bill C-475 is a far better proposal with amendments to PIPEDA with more clear cut security breach disclosure requirements along with order making power that is backed by significant penalties for compliance failures. Those provisions would do far to ensure greater respect for Canadian privacy law and give Canadians the assurance of notifications in the event of security breaches. What the bill does not do, however, is address the other side of the privacy coin, namely the failure of government to hold itself accountable for the personal information it collects and now regularly seems to fail to safeguard.


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    Government Caves to Lobbying Pressure on Anti-Spam Legislation

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    Tuesday January 15, 2013
    Appeared in the Toronto Star on January 13, 2013 as Government Caves to Lobbying Pressure on Anti-Spam Law

    Canada's anti-spam legislation was back in the news last week as the government unveiled revised regulations that may allow for the law to finally take effect next year. Canada is one of the only developed economies in the world without an anti-spam law and lengthy delays have created considerable uncertainty.

    Calls for Canadian anti-spam legislation date back to 2005, when a national task force recommended enacting laws to target spam, spyware, and other online harms (I was a member of the task force). The government passed the anti-spam law in December 2010, with many expecting a quick introduction of the accompanying regulations that would allow the law to take effect. After business groups criticized draft regulations released in June 2011, however, the government hit the pause button, leaving the law in limbo.

    Critics used the delay to spread fear about "job losses" and "regulatory red tape", yet the reality is that the battle over the anti-spam battle boils down largely to a single issue: whether businesses should be required to obtain explicit, opt-in consumer consent before sending electronic commercial messages. The law says they should and much of the intense lobbying for new exceptions is premised on avoiding this requirement.

    The new law unquestionably sets a high bar for consent. It envisions a marketing framework where consumers reassert some measure of control over their email in-boxes by opting-in to commercial messages, rather than being required to opt-out.  Moreover, the law establishes email form requirements to simplify opting-out of future messages should consumers change their minds and backs the new framework with stiff penalties for violations the law.

    While an opt-in consent system should be relatively uncontroversial - businesses benefit by sending messages to consumers who clearly want to receive them - the vociferous criticism makes it plain that many marketing organizations fear that if Canadians are asked directly for their email marketing consent, many will decline.

    Given those fears, Industry Minister Christian Paradis faced considerable lobbying pressure to water down the law through the regulatory process.  Earlier this month, he caved to some demands by introducing a host of new exceptions that limit the effectiveness of the opt-in model.

    For example, the regulations include a broad new exception for third party referrals that will allow businesses to send commercial electronic messages without consent based merely on a referral from a third party. This issue was hotly debated when the law was being drafted and, at the time, the government rejected claims that such an exception was warranted.

    The new regulations also include an expansive definition for a "personal relationships" exception that is likely to be used by organizations to send unsolicited commercial messages based on limited contact. The flexible definition of personal relationship may open the door to claims that Facebook "likes" or similar social media contact is sufficient to constitute a personal relationship.

    Industry groups had asked the government to pre-approve existing consents obtained under PIPEDA, the private sector privacy law, arguing that obtaining new consumer consents will be disruptive.  The government rightly rejected those requests, however, since the PIPEDA consents will often have been implied from consumer activity and not based on an actual, informed consent.

    Those businesses concerned by the new consent standards may find comfort in the assurance that some requirements are unlikely to take effect until 2017.  The law features a lengthy transition period that will allow businesses to rely on their existing consents for three years after the legislation takes effect. Assuming the regulations are finalized in 2013 and the law becomes operational in 2014, businesses will have been given seven years to ask Canadian consumers if they consent to the use of their personal information for marketing purposes.

    Michael Geist holds the Canada Research Chair in Internet and E-commerce Law at the University of Ottawa, Faculty of Law. He can reached at mgeist@uottawa.ca or online at www.michaelgeist.ca.


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