Canada Launches Major Privacy Overhaul with New Digital Regulator
OTTAWA — The federal Liberal government is set to transfer enforcement of new privacy rules to a newly established digital regulator, marking the most significant overhaul of Canada’s privacy framework in over two decades.
Artificial Intelligence and Digital Innovation Minister Evan Solomon announced the Protecting Privacy and Consumer Data Act on Monday, emphasizing the need for a standalone technology regulator with robust enforcement powers. “We believe it is very important to establish a strong commission with appropriate enforcement powers, and we are doing that as quickly as possible,” he told reporters.
The legislation follows last week’s introduction of the Safe Social Media Act by Culture Minister Marc Miller, which targets online harms and proposes a ban on social media use by children under 16 unless an exemption is granted. Both initiatives will be overseen by the same body: the Digital Safety and Data Protection Commission of Canada.
Why a New Regulator?
Senior government officials, speaking on background, noted a significant overlap between privacy and technology regulation—particularly around issues like children’s data, which implicates both privacy rights and age-appropriate design principles. As a result, the new commission will handle private-sector privacy enforcement, while the existing privacy commissioner will focus solely on the federal government’s handling of personal information.
Solomon stressed that current privacy laws were “written before the iPhone” and no longer reflect today’s digital landscape. The new bill aims to modernize consent requirements, classify children’s data as “sensitive,” and address emerging threats like AI-generated deepfakes.
Key Provisions of the Privacy Bill
Among its core measures, the legislation grants Canadians the right to request deletion of their personal data—including synthetic media created using their likeness. While no fixed deadlines are imposed for compliance, organizations may justify refusals under certain conditions.
The bill also takes a principles-based approach to surveillance pricing, allowing the regulator to intervene “if the harm outweighs the benefits.” Solomon cited examples like grocery rewards programs to explain why an outright ban wasn’t pursued, noting many Canadians rely on such systems for savings.
Industry response has been cautiously positive. Josh Tabish, senior director for Canada at the tech group Chamber of Progress, stated: “I think Canadians will welcome a new right to privacy, but the real test is whether this bill protects people’s data without making digital services less useful.”
Timeline and Broader AI Strategy
Although officials estimate it will take more than 18 months for the new regulator to become fully operational, the government retains authority to implement regulations in the interim. The move aligns with Prime Minister Mark Carney’s recently unveiled AI strategy, which balances security concerns with efforts to drive mass adoption, job creation, and nationwide AI skills development.
With these reforms, Canada signals its intent to build a more agile, independent regulatory framework capable of addressing the complex intersection of privacy, artificial intelligence, and digital safety in the modern era.
