It’s widely accepted that the internet has impacted nearly every element of Canadians' lives. We use a variety of email and social media platforms to communicate with co-workers, friends, neighbours, and others. We even online shopping platforms to make everyday purchases like groceries and cleaning products, to big-ticket items like cars and mortgages.
Because so much happens on the internet, we should not be surprised that the Canadian government has put a number of regulations and laws in place to protect the privacy and information of citizens. With all the social and commercial exchanges that take place, many people have become vulnerable to scams, identity theft, and other dangerous crimes.
Understanding cybersecurity in Canada is important to anyone that regularly participates in digital networks and economies - particularly business professionals and consumers. This article is all about learning more about cybersecurity regulations in Canada, including the PIPEDA principles, Quebec’s Law 25, and other data protection laws.
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What is PIPEDA?
PIPEDA is an acronym for Personal Information Protection and Electronics Document Act. This act was legislated by the federal government. PIPEDA sets the rules for how private companies and organizations collect, use, and disclose personal information for profit and commercial activities in Canada.
Information about PIPEDA can be found at the website of the Office of the Privacy Commissioner of Canada (OPC).
PIPEDA ensures that the privacy of individuals are protected while also enabling businesses to operate. PIPEDA is comprised of ten principles that regulate the use of personal information, and supports people to control how their personal information is being used.
What are The Ten Principles of PIPEDA?
Businesses and organizations are responsible for each of the ten information principles.
- Accountability
Organizations must appoint someone to be accountable for its compliance with fair information principles, and are responsible for any personal information under its control.
- Identifying Purposes
The reasons or purposes for which personal information is being collected must be identified by the organization before or at the time it is being collected.
- Consent
The knowledge and consent of the individual are required for the collection, use or disclosure of personal information, with some exceptions. In other words, individuals must voluntarily disclose information and should always refuse when they do not want to share their contact information.
- Limiting Collection
Organizations must only collect personal information for the purpose it has identified. Information must be collected fairly and lawfully.
Personal information is any factual or subjective information that can identify an individual, including: name, age, address, phone number, email address, financial information (ex. credit card), health records, employee records, opinions, evaluations, or comments about an individual.
- Limiting use, disclosure, and retention
Personal information can only be used for the purposes for which it was collected, and must only be kept as long as required to serve those purposes - unless the individual consents otherwise or it is required by law.
- Accuracy
Personal information must be as accurate, current, and complete as possible to properly satisfy the purposes for it is used.
- Safeguards
Personal information must be protected by appropriate security.
- Openness
Organizations must make information about its policies and practices for the management of personal information publicly and readily available.
- Individual Access
An individual must be informed of the existence, use, and disclosure of their personal information, must be given access to that information, and be able to challenge the accuracy of the information and have it amended as they see fit.
- Challenging Compliance
Individuals shall be able to challenge an organization’s compliance with the 10 PIPEDA principles. Challenges should be addressed to the organization’s compliance officer (ex. Chief Privacy Officer).
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What is Quebec’s Law 25?
Another important piece of legislation developed to protect personal information in Canada is Quebec’s Law 25. This law was created to address the increasing need to protect the personal information of individuals and to promote transparency and accountability for organizations handling sensitive data in Quebec.
Law 25 is similar to PIPEDA in that it has similar principles and objectives, but solely applies to organizations in Quebec. Alberta and British Columbia have similar provincial legislation.
What are the key provisions of Law 25?
There are eight key provisions of Law 25, but to understand the full scope of the legislation it is important to explore the original version. Below is a summary of some of the key points.
- Enhanced Consent Requirements
Law 25 stipulates that organizations must have informed and explicit consent from individuals before gathering, using, or sharing their information.
- Right to Data Portability
People can request access to their personal data in a common format so they can share it with another organization.
- Privacy Impact Assessments
Organizations must assess the impact of new technologies that involve the usage of personal information
- Data Minimization
Organizations must collect only the information needed for their stated purpose.
- Accountability
A privacy officer must be appointed by organizations to ensure compliance with privacy laws.
- Data Breach Notification
When a data breach occurs, organizations must notify Quebec’s Commission d’accès à l’information (CAI) if there is a serious risk of harm.
- Transparency for Automated Decision-Making
When automated systems are used to make decisions with the personal information of individuals, organizations must exercise transparency by sharing the logic of those decisions and the option to request human intervention.
- Penalties for Non-Compliance
Non-compliance with Law 25 can result in significant fines: up to $25 million in Canadian dollars or 4% of the organization’s revenue (whichever is higher).
What Can Legal Professionals do to Comply with Canada's Privacy and Cybersecurity Laws?
Legal professionals and other stakeholders can support their firms and organizations in complying with Canada’s cybersecurity laws by building a thorough understanding of legislation like PIPEDA and Quebec’s Law 25.
Conducting risk assessments that identify weak points in data management is one key practice that will help to avoid any data leaks. This means critically examining IT systems, and engaging in Privacy Impact Assessments when new software or technology is adopted.
Establishing a fulsome privacy policy will also support compliance in a big way. In the policy, key areas like purposes of data collection, data retention and disposal periods, and information on how clients can access their data should be addressed.
Finally, it is essential for legal professionals and organizational leaders to ensure staff are trained on privacy and security. Employee errors are unfortunately a leading cause of data breaches, and training will help staff to understand why it is important to safeguard sensitive personal information, how to identify phishing and cyber threats, and what the organization’s privacy policies are.
If you are still a law student or considering becoming a lawyer, you may benefit from additional coursework or programs that will enable you to specialize in the area of cybersecurity and information technology law. Schools like the University of Toronto and the University of Ottawa offer law and technology programs.
Which Data Protection Measures can Strengthen Cybersecurity?
Why is Cybersecurity so Important?
Cybersecurity is critical to Canadians because it protects their personal information, financial data, and personal reputations. It protects the privacy of adults, and creates a safer environment for young people who may be using the internet for school.
When cybercriminals obtain access to an individual’s personal data, they become vulnerable to theft, exploitation, and identity theft.
For organizations and businesses, cybersecurity is essential to prevent ransomware, or events where cybercriminals demand money after breaching customer information. Cyber threats like Distributed Denial of Service can halt operations, resulting in revenue loss. When cyberattacks impact the information of customers, ultimately valuable trust is lost between the business and consumer.
Finally, cybersecurity is essential for preventing government systems from international interference and espionage. Particularly in the area of defence, protecting information is critical.
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Final Thoughts
Sensitive information is everywhere, especially in a digitized world. It is important for people to know what happens to their personal information once it is submitted to a business or organization. In Canada, understanding legislation like PIPEDA and Law 25 is essential to knowing your rights and responsibilities either as a client or a member of any organization.
Knowing what is happening with the information you put out there, or how your organization handles the information of customers or clients, is key to protecting yourself or others from cyberattacks, identity theft, or financial loss.
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