Changes to Federal Privacy Legislation Could Cost Federally Regulated Carriers
On June 16, the Canadian government tabled new workplace legislation that specifies what employers can and cannot do in terms of employee privacy. Bill C-27[1], is designed to update Canada’s federal private sector privacy law, the Personal Information Protection and Electronic Documents Act (PIPEDA), to create a new tribunal, and propose new rules for artificial intelligence (AI) systems.[2]
If the Bill passes, it would replace Part 1 of the Personal Information Protection and Electronic Documents Act with the new Consumer Privacy Protection Act (CPPA). It would also enact the Personal Information and Data Protection Tribunal Act (PIDPTA), which develops a new administrative tribunal to hear appeals of certain decisions made by the Privacy Commissioner.[3]
At the end of the day, there are various new requirements that are being set out by this Bill. And it looks like there are growing efforts to consider data security, not just within Canada but also internationally, which indicates that employers should start to assess their own data policies and procedures. [4]
The change that is of most concern to employers is the requirement for consent. If passed, employers must conduct a privacy impact assessment and provide the Commissioner with copies of the assessment. Another issue employers are concerned with are the potential penalties, specifically the consequences of either not following the Bill or breaking the law entirely. The tribunal, once established could dole out administrative monetary penalties up to 10 million dollars of 3% of gross global revenues. That could be increased to 25 million or 5% of global gross revenue in the event that the company is found guilty of an indictable offence.
As employers still don’t know what to expect from the changes to the legislation, many employers are concerned about the implications. At the end of the day, this Bill follows a growing trend toward privacy, providing stronger protection for all parties involved. It is possible, that this bill will fail to pass as it is a rework of bill C-11, from 2020 so it may not even be an issue going forward.[5]
Employers should be proactive in dealing with the changes generated by this legislation. This includes addressing any gaps in their policies from the start, rather than waiting until the last minute, when the bill takes effect. AMTA strongly advise employers to begin reviewing their internal policies and procedures to ensure that any existing or potential gaps are addressed and in this case seek the guidance of legal counsel if you are unsure.
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References
[1] “Government Bill (House of Commons) C-27 (44-1) – First Reading – Digital Charter Implementation Act, 2022 – Parliament of Canada.” Government Bill (House of Commons) C-27 (44-1) – First Reading – Digital Charter Implementation Act, 2022 – Parliament of Canada, www.parl.ca, 16 June 2022, https://www.parl.ca/DocumentViewer/en/44-1/bill/C-27/first-reading
[2] Thompson, Kristen. “Https://Www.Dentons.Com/En/Insights/Articles/2022/June/20/Canadas-New-Federal-Privacy-Bill-C27-Summary-of-Significant-Impacts-and-New-Proposals.” Government Bill (House of Commons) C-27 (44-1) – First Reading – Digital Charter Implementation Act, 2022 – Parliament of Canada, www.parl.ca, https://www.parl.ca/DocumentViewer/en/44-1/bill/C-27/first-reading. Accessed 2 Aug. 2022
[3] Douglas, Emily. “Bill C-27: How Will the Privacy Law Impact Your Organization? | HRD Canada.” Bill C-27: How Will the Privacy Law Impact Your Organization? | HRD Canada, www.hcamag.com, 19 June 2022, https://www.hcamag.com/ca/specialization/employment-law/bill-c-27-how-will-the-privacy-law-impact-your-organization/413665
[4] Douglas, Emily. “Bill C-27: How Will the Privacy Law Impact Your Organization? | HRD Canada.” Bill C-27: How Will the Privacy Law Impact Your Organization? | HRD Canada, www.hcamag.com, 19 June 2022, https://www.hcamag.com/ca/specialization/employment-law/bill-c-27-how-will-the-privacy-law-impact-your-organization/413665
[5] Thompson, Kristen. “Https://Www.Dentons.Com/En/Insights/Articles/2022/June/20/Canadas-New-Federal-Privacy-Bill-C27-Summary-of-Significant-Impacts-and-New-Proposals.” Government Bill (House of Commons) C-27 (44-1) – First Reading – Digital Charter Implementation Act, 2022 – Parliament of Canada, www.parl.ca, https://www.parl.ca/DocumentViewer/en/44-1/bill/C-27/first-reading. Accessed 2 Aug. 2022