Canada’s new privacy policy: Bill C-27

29. June 2022

On June 16th, 2022 the Canadian Federal Government has introduced a new privacy bill, named Bill C-27 (a re-working of Bill C-11). Among its main goals there is the will to strengthen the role of the Privacy Commissioner and to establish a special Data Protection Tribunal. Furthermore, it aims to propose new regulations regarding artificial intelligence. If passed, the act would substitute Part 1 of the current PIPEDA (Personal Information and Electronic Documents Act), replacing it with the new CPPA (Consumer Privacy Protection Act). Bill C-27 still needs to undergo reviews by various committees and is not expected to come into force until after summer.

The Office of the Privacy Commissioner  enforces the Canadian federal privacy laws and provides counsel to individuals regarding the protection of their personal data and their rights. With the new bill the Commissioner will be able to make recommendations about penalties to the Tribunal along with other authorities.

If the Bill comes into force, the Data Protection Tribunal’s power will be amplified. Its decisions will be binding and final.  Moreover, its decisions may be enforced as if they were orders of a superior court. The Tribunal also may review the recommendations made by the Privacy Commissioner, but is not bound to follow them in any way.

One other important innovation brought by Bill C-27 is the clarification of the concept of legitimate interest: this has been added as an exception to consent, as it outweighs potential adverse effects on the data subject.

All data regarding children are now considered to be sensitive, and must be treated as such by organizations and corporations. This means introducing higher standards for handling that data and limiting the rights to collect that information.

The concepts of de-identification and anonymization have been adapted to global standards.

Finally, along with Bill C-27 the Government aims to introduce the new Artificial Intelligence and Data Act, creating a framework for high-impact AI systems. Its goals are to regulate international and intraprovincial AI systems commerce by introducing common requirements across Canada, and to prohibit conduct in relation to AI systems that may result in harm to individuals or their interests. A new working definition of AI system is given.

Lastly, the Act aims at the creation of a new AI Data Commissioner inside a ministry. This figure will help the enforcement of the Act across Canada.