1. Introduction
The Personal Information Protection and Electronic Documents Act represents Canada’s federal privacy law for private-sector organizations. Enacted in 2000 and periodically updated, PIPEDA sets the ground rules for how businesses must handle personal information in the course of their commercial activities. Unlike more prescriptive regulations, PIPEDA takes a principles-based approach, focusing on reasonable and appropriate practices for protecting privacy.
The Act balances individuals’ right to privacy with organizations’ need to collect, use, and disclose personal information for legitimate business purposes. It applies across Canada except in provinces that have substantially similar privacy legislation, though it still applies to interprovincial and international transactions in these provinces.
2. Scope and Application
PIPEDA applies to private-sector organizations that collect, use, or disclose personal information in the course of commercial activities. The law has broad application but recognizes exceptions and variations based on organization type and data use.
| Organization Type | Application | Examples |
|---|---|---|
| Private Businesses | All commercial activities | Retailers, banks, telecommunications companies |
| Federal Works | All personal information handling | Airlines, banks, telecommunications |
| Health Providers | Commercial activities only | Private clinics, pharmacies, laboratories |
Protected Information
| Type of Information | What It Includes | Protection Level |
|---|---|---|
| Personal Information |
– Name and contact details – Age and ID numbers – Financial information – Medical records | Must follow all PIPEDA principles |
| Business Contact Information |
– Work email and phone – Job title – Business address | Limited protection when used for business communications |
| Employee Information |
– Employment records – Performance reviews – Benefits information | Protected for federally regulated businesses |
3. Fair Information Principles
PIPEDA is built around ten fair information principles that organizations must follow. These principles provide a framework for handling personal information responsibly and respectfully.
| Principle | What It Means | Practical Example |
|---|---|---|
| Accountability | Organizations are responsible for personal information under their control | Like having a designated privacy officer responsible for ensuring compliance |
| Identifying Purposes | Organizations must explain why they collect information | Like telling customers exactly why you need their email address |
| Consent | Knowledge and permission required for collecting, using, or sharing information | Like asking permission before adding someone to a mailing list |
| Limiting Collection | Only collect information needed for identified purposes | Like only asking for necessary information on a form |
4. Key Requirements
Organizations must implement specific measures to comply with PIPEDA’s principles. These requirements focus on reasonable and appropriate practices rather than prescriptive technical standards.
| Requirement Area | Key Obligations | Implementation Example |
|---|---|---|
| Privacy Management |
| Like having a safety supervisor and rules in a workplace |
| Security Safeguards |
| Like having locks, security systems, and procedures to protect valuable items |
5. Enforcement and Compliance
The Office of the Privacy Commissioner of Canada (OPC) oversees PIPEDA enforcement through a complaint-based system. The Commissioner can investigate complaints, conduct audits, and publish findings, though cannot issue direct fines. However, serious violations can be taken to Federal Court, which can order organizations to change their practices and award damages to affected individuals.
Organizations must cooperate with OPC investigations and demonstrate their compliance with PIPEDA’s principles. While the Act emphasizes remediation over punishment, Federal Court can impose significant consequences for serious privacy violations, including damages up to $100,000 for deliberate violations.