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In a significant move to modernise Canada’s privacy framework, the federal government has unveiled a new bill in the House of Commons that mandates stricter data protection measures, particularly for children. This legislation, introduced by Evan Solomon, Minister of Artificial Intelligence and Digital Innovation, also establishes a new regulatory body to combat practices such as surveillance pricing, where consumers are charged varying prices based on their purchasing behaviour.
Key Features of the New Legislation
The newly proposed Bill C-36 seeks to enhance privacy rights for Canadians by imposing new obligations on companies regarding the collection and management of personal data. Notably, the legislation aims to safeguard children’s data by requiring parental consent for its retention and use. Solomon emphasised that children’s personal information would be treated with heightened sensitivity, ensuring robust protections that reflect the unique vulnerabilities of younger users.
In an effort to combat surveillance pricing, the bill empowers the forthcoming Digital Safety and Data Protection Commission of Canada to provide guidance to businesses on ethical data use. Although the term “surveillance pricing” is not explicitly mentioned in the text, Solomon indicated that the regulator would address this issue head-on, aiming to eliminate practices that could be deemed exploitative.
Enhanced Consumer Rights and Transparency
The proposed legislation also articulates Canadians’ rights to request the deletion of their personal data, including instances of deepfake technology where individuals’ likenesses are misappropriated. While there are provisions for exceptions—such as data necessary for law enforcement—the overarching goal is to provide consumers with greater control over their personal information.
Moreover, the bill mandates transparency from companies regarding their data usage. Canadians will be able to inquire about the specific data used in decisions affecting them, such as mortgage approvals or credit ratings. Solomon remarked that the public is increasingly seeking clarity in how artificial intelligence influences decision-making processes, stating, “People want visibility inside how decisions are made by AI.”
Establishment of a New Regulatory Body
The legislation introduces a new authority, the Digital Safety and Data Protection Commission of Canada, which will oversee compliance with the updated privacy laws. This body, a rebranding of the previously proposed Digital Safety Commission, will have the power to impose significant penalties—up to $10 million or 3% of global revenue—on companies failing to meet their obligations under the new framework.
Philippe Dufresne, the Privacy Commissioner of Canada, endorsed the bill as a pivotal advancement in protecting privacy rights, noting that many of his recommendations have been incorporated. Key highlights include the recognition of privacy as a fundamental right and explicit protections for children’s data.
Modernising Outdated Regulations
This new bill replaces the longstanding Personal Information Protection and Electronic Documents Act (PIPEDA), which has been in effect for over 25 years and was not designed to address the complexities introduced by artificial intelligence and the widespread collection of children’s data online. The legislation will also facilitate the transfer of personal data between businesses, ensuring compliance with requests in a timely manner.
The bill outlines that businesses must obtain clear consent from individuals before collecting their personal information, ensuring that consumers understand how their data will be utilised. In certain circumstances, such as emergencies, companies may collect data without prior consent. However, the bill mandates that robust privacy safeguards must be in place for data transferred outside Canada.
Vass Bednar, managing director of the Canadian Shield Institute, commented on the bill’s introduction, stating it represents a “welcome restart” in privacy legislation, but emphasised that its true efficacy will be judged on whether it provides Canadians with meaningful protections in the increasingly complex digital economy.
Why it Matters
The introduction of Bill C-36 is a crucial step in adapting Canada’s privacy laws to the realities of the digital age. As data privacy concerns grow—especially regarding children—this legislation aims to empower consumers and hold companies accountable for their data practices. By establishing a framework that prioritises transparency and consent, the Canadian government is positioning itself to better protect its citizens in an era defined by rapid technological advancement. The success of this bill will hinge on its implementation and enforcement, as Canadians seek assurance that their personal information is being handled with the utmost care and respect.