Canada Set to Unveil Major Privacy Law Reform Targeting AI and Children’s Data
The federal government is preparing to introduce a long-anticipated update to Canada’s private sector privacy legislation on Monday, marking its third attempt to modernize the Personal Information Protection and Electronic Documents Act (PIPEDA) for the digital age. The bill, to be introduced in the House of Commons by AI Minister Evan Solomon, aims to address growing concerns about artificial intelligence and data protection.
Key Provisions of the Proposed Legislation
The new bill is expected to include several significant measures designed to strengthen privacy protections for Canadians. Among the most notable provisions are enhanced safeguards for children’s personal data and restrictions preventing private retailers, such as grocery stores, from using consumer data for price monitoring purposes.
Minister Solomon has emphasized that the legislation will enshrine privacy as a fundamental right. “We are looking at things like the right to erasure in data protection legislation,” he told reporters earlier this month. “They want to ensure that children’s information is kept confidential… (and) we view (enshrining) privacy as a fundamental right.”
Addressing AI Data Collection Concerns
The proposed reforms come amid mounting scrutiny of how generative AI platforms handle personal data. A joint investigation by federal and provincial privacy commissioners last month found that OpenAI, the company behind ChatGPT, was engaging in “overreaching” data collection without seeking consent from Canadians. The investigation prompted OpenAI to commit to improved privacy protections and data collection policies.
Federal Data Protection Commissioner Philippe Dufresne has repeatedly called for stronger oversight powers under PIPEDA, including the ability to impose meaningful fines that hold companies accountable for violations. The government’s new online tort law would establish a Digital Security Commission with enforcement powers over social media and AI platforms.
Government’s Mixed Record on Privacy
However, some experts have raised concerns about the Liberal government’s overall approach to privacy. Michael Geist, a professor and Canada Research Chair in Internet and E-Commerce Law at the University of Ottawa, pointed to Bill C-22, the lawful access legislation for police and national security investigations, which has sparked concerns about potential requirements for tech companies to preserve users’ metadata and provide access for law enforcement.
“This is a government that is talking about making a fundamental privacy priority a foundational element of future privacy law — while also proposing, as part of Bill C-22, potentially one of the most pressing privacy issues we have seen in Canada in years,” Geist said in an interview with Global News last week.
The online tort law would also require social media companies to verify users’ ages to ban children under 16 from holding accounts, creating another data collection system that critics argue lacks adequate controls.
Previous Attempts and Current Context
This represents the Liberal government’s third attempt to update PIPEDA, having introduced bills in 2020 and 2023 that failed to become law. The legislation has been included as a key pillar of the federal AI strategy focused on keeping Canadians safe and building trust in emerging technologies.
As the bill moves forward, stakeholders will be watching closely to see whether the government can balance its stated commitment to privacy as a fundamental right with its other legislative priorities that some argue may undermine those protections.
