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In a significant move to modernise Canada’s privacy framework, the government has introduced Bill C-36, which mandates stricter responsibilities for businesses regarding the handling of personal data, particularly that of children. Announced during Question Period on Monday by Evan Solomon, Minister of Artificial Intelligence and Digital Innovation, the bill seeks to fortify the protections surrounding Canadians’ data while also addressing the contentious issue of surveillance pricing.
Enhanced Protections for Children’s Data
One of the bill’s key provisions is the establishment of a higher standard for managing data related to minors. Under the proposed legislation, companies will be compelled to obtain explicit consent from parents before collecting or retaining any personal information concerning children. Solomon emphasised that the bill mandates companies to treat this data as sensitive, ensuring robust safeguards are in place during its collection, use, or sharing.
“The bill requires companies to treat children’s personal information as sensitive. That means stronger protection when companies collect, use or share information about children,” Solomon stated, reflecting a growing recognition of the need to safeguard the digital footprints of younger Canadians.
Tackling Surveillance Pricing
Another pivotal aspect of Bill C-36 is its aim to combat surveillance pricing, where businesses charge different prices for the same products based on consumers’ purchasing habits. While the bill does not explicitly mention this practice, Solomon has indicated plans for the new regulator to provide guidance on the matter once established. He stated, “It takes aim at surveillance pricing to stop price gouging,” highlighting the government’s commitment to ensuring fairness in consumer pricing.
The legislation seeks to strike a balance between allowing companies to use data beneficially—such as through loyalty programmes—while imposing strict regulations to prevent exploitation. The public desire for transparency in how data is utilised in pricing decisions has never been more pronounced, with Solomon noting, “Canadians want to see companies apply a higher standard when dealing with the personal information of those younger than 18.”
Strengthening Consumer Rights and Transparency
Bill C-36 also enhances consumer rights by empowering Canadians to request the deletion of their personal data. This includes a modern approach to managing deepfakes, where artificial intelligence generates synthetic images or videos using individuals’ likenesses. However, there are exceptions to the deletion mandate, particularly for data that does not identify an individual or information retained for law enforcement purposes.
Furthermore, the bill introduces requirements for companies to disclose how personal data influences significant decisions, such as mortgage or credit ratings. “People want visibility inside how decisions are made by AI,” Solomon remarked, underscoring the public’s demand for greater insight into automated processes that significantly affect their lives.
Establishing a New Regulatory Body
The legislation also proposes the creation of a new regulatory authority, the Digital Safety and Data Protection Commission of Canada, which will oversee the implementation of these enhanced privacy standards. This body will have substantial enforcement powers, including the ability to impose fines of up to $10 million or 3 per cent of a company’s global revenue for non-compliance.
Philippe Dufresne, Canada’s Privacy Commissioner, welcomed the bill as a crucial advancement in protecting citizen privacy, noting, “This bill represents a pivotal step for privacy in Canada.” His endorsement of the legislation highlights the alignment of the proposed changes with the recommendations made by his office, particularly regarding the recognition of privacy as a fundamental right.
Why it Matters
The introduction of Bill C-36 is a landmark development in Canada’s approach to data privacy, marking an essential evolution in the way personal information is handled in the digital age. With growing concerns over online privacy and data misuse, particularly regarding children, the new legislation aims not only to enhance protections but also to ensure that consumers have a say in how their information is managed. As digital interactions become increasingly integral to our daily lives, the implications of this bill for both consumers and businesses will be profound, potentially reshaping the landscape of data privacy and consumer rights in Canada for years to come.
