PIPEDA Overview

Personal Information Protection and Electronic Documents Act

What is PIPEDA?

The Personal Information Protection and Electronic Documents Act (PIPEDA) is Canada's federal privacy law that governs how private sector organizations collect, use, and disclose personal information in the course of commercial activities. PIPEDA applies to all private sector organizations in Canada, except in provinces that have substantially similar legislation.

PIPEDA is based on 10 fair information principles and requires organizations to obtain consent for the collection, use, and disclosure of personal information, except in limited circumstances. The law also gives individuals the right to access their personal information and request corrections.

PIPEDA's 10 Fair Information Principles

1. Accountability

Organizations are responsible for personal information under their control and must designate someone to be accountable for compliance.

2. Identifying Purposes

Organizations must identify the purposes for which personal information is collected at or before the time of collection.

3. Consent

The knowledge and consent of the individual are required for the collection, use, or disclosure of personal information, except where inappropriate.

4. Limiting Collection

The collection of personal information must be limited to that which is necessary for the purposes identified by the organization.

5. Limiting Use, Disclosure, and Retention

Personal information must not be used or disclosed for purposes other than those for which it was collected, except with consent or as required by law.

6. Accuracy

Personal information must be as accurate, complete, and up-to-date as is necessary for the purposes for which it is to be used.

7. Safeguards

Personal information must be protected by security safeguards appropriate to the sensitivity of the information.

8. Openness

Organizations must make readily available to individuals specific information about their policies and practices relating to the management of personal information.

9. Individual Access

Upon request, an individual must be informed of the existence, use, and disclosure of their personal information and be given access to that information.

10. Challenging Compliance

An individual must be able to address a challenge concerning compliance with the above principles to the designated individual accountable for the organization's compliance.

Key PIPEDA Requirements

Privacy Policy and Notice

  • Clear and understandable privacy policy
  • Notice of collection at point of collection
  • Information about purposes, uses, and disclosures
  • Contact information for privacy officer

Consent Management

  • Informed consent for collection, use, and disclosure
  • Consent withdrawal mechanisms
  • Implied vs. express consent requirements
  • Consent for secondary uses and disclosures

Individual Rights

  • Right to access personal information
  • Right to request correction of inaccurate information
  • Right to withdraw consent
  • Right to file complaints with Privacy Commissioner

Security Safeguards

  • Physical, technical, and administrative safeguards
  • Access controls and authentication
  • Data encryption and secure transmission
  • Regular security assessments and updates

Breach Notification Requirements

Mandatory Breach Reporting

  • Report to Privacy Commissioner within 72 hours
  • Notify affected individuals without delay
  • Maintain breach records for 3 years
  • Document breach assessment and response

Breach Assessment Criteria

  • Sensitivity of personal information involved
  • Number of individuals affected
  • Likelihood of harm to individuals
  • Effectiveness of safeguards in place

PIPEDA Compliance Program

1

Privacy Impact Assessment

Conduct comprehensive assessment of current privacy practices and identify compliance gaps.

2

Policy Development

Develop comprehensive privacy policies, procedures, and consent mechanisms.

3

Training and Awareness

Implement privacy training programs for all employees and stakeholders.

4

System Implementation

Implement privacy controls, access management, and data protection measures.

5

Ongoing Compliance

Maintain compliance through regular audits, monitoring, and program updates.

PIPEDA Penalties and Enforcement

Privacy Commissioner Powers
  • • Investigation of complaints
  • • Audit of privacy practices
  • • Public naming of non-compliant organizations
  • Recommendations for compliance
Potential Consequences
  • • Reputational damage and public scrutiny
  • • Loss of customer trust and business
  • • Increased regulatory oversight
  • • Potential civil liability

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