New laws to strengthen Canadians' privacy protection and trust in the digital economy

Canadians to benefit from clear rules around the use of personal information and responsible AI development

OTTAWA, ON, June 16, 2022 /CNW/ - Canadians increasingly rely on digital technology to connect with loved ones, to work and to innovate. That's why the Government of Canada is committed to making sure Canadians can benefit from the latest technologies, knowing that their personal information is safe and secure and that companies are acting responsibly.

Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, together with the Honourable David Lametti, Minister of Justice and Attorney General of Canada, introduced the Digital Charter Implementation Act, 2022, which will significantly strengthen Canada's private sector privacy law, create new rules for the responsible development and use of artificial intelligence (AI), and continue advancing the implementation of Canada's Digital Charter. As such, the Digital Charter Implementation Act, 2022 will include three proposed acts: the Consumer Privacy Protection Act, the Personal Information and Data Protection Tribunal Act, and the Artificial Intelligence and Data Act.

The proposed Consumer Privacy Protection Act will address the needs of Canadians who rely on digital technology and respond to feedback received on previous proposed legislation. This law will ensure that the privacy of Canadians will be protected and that innovative businesses can benefit from clear rules as technology continues to evolve. This includes:

• increasing control and transparency when Canadians' personal information is handled by organizations;
• giving Canadians the freedom to move their information from one organization to another in a secure manner;
• ensuring that Canadians can request that their information be disposed of when it is no longer needed;
• establishing stronger protections for minors, including by limiting organizations' right to collect or use information on minors and holding organizations to a higher standard when handling minors' information;
• providing the Privacy Commissioner of Canada with broad order-making powers, including the ability to order a company to stop collecting data or using personal information; and
• establishing significant fines for non-compliant organizations—with fines of up to 5% of global revenue or $25 million, whichever is greater, for the most serious offences.

The proposed Personal Information and Data Protection Tribunal Act will enable the creation of a new tribunal to facilitate the enforcement of the Consumer Privacy Protection Act. 

The proposed Artificial Intelligence and Data Act will introduce new rules to strengthen Canadians' trust in the development and deployment of AI systems, includng:

• protecting Canadians by ensuring high-impact AI systems are developed and deployed in a way that identifies, assesses and mitigates the risks of harm and bias;
• establishing an AI and Data Commissioner to support the Minister of Innovation, Science and Industry in fulfilling ministerial responsibilities under the Act, including by monitoring company compliance, ordering third-party audits, and sharing information with other regulators and enforcers as appropriate; and
• outlining clear criminal prohibitions and penalties regarding the use of data obtained unlawfully for AI development or where the reckless deployment of AI poses serious harm and where there is fraudulent intent to cause substantial economic loss through its deployment.

"In today's economy, Canada's competitiveness depends on our ability to use digital innovation to harness the power of data. Safety and trust must be the foundation of this new digital economy. By introducing the Digital Charter Implementation Act, 2022, we are ensuring that Canadians can trust when and how their information is being used. It will also give businesses clear rules to support their efforts to innovate with data and will introduce a new regulatory framework for the responsible development of artificial intelligence systems, while recognizing the need to protect young people and their information. This will not only promote confidence in the digital space but also ensure a safe, more inclusive and secure digital economy for the benefit of all Canadians."
– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

"We are committed to protecting the personal information of Canadians while encouraging responsible innovation for the public good. The Digital Charter seeks to bring essential online protections for individuals into the 21st century. Our government is also modernizing the Privacy Act, Canada's federal public sector personal information protection statute, to ensure that Canada's privacy laws keep pace with technological change and continue to reflect evolving Canadian values."
– The Honourable David Lametti, Minister of Justice and Attorney General of Canada

• The Government of Canada is committed to bringing Canada's privacy and data protection laws in line with international partners.
• Once the Digital Charter Implementation Act, 2022 is passed, Part 1 of this act would replace the Personal Information Protection and Electronic Documents Act with the new Consumer Privacy Protection Act. Part 2 would establish a new administrative tribunal to play a role in the enforcement of the new privacy law, and Part 3 would implement the Artificial Intelligence and Data Act to regulate responsible development of AI in the Canadian marketplace.
• The Privacy Commissioner of Canada will continue to oversee organizations' compliance with the Consumer Privacy Protection Act and have the power to issue orders and make recommendations for administrative monetary penalties to be levied by the Personal Information and Data Protection Tribunal.
• The Minister of Innovation, Science and Industry, supported by the AI and Data Commissioner, would be responsible for the oversight of the Artificial Intelligence and Data Act to help ensure that standards for international and interprovincial trade in AI systems are aligned with international standards, supporting international market access for Canadian businesses.

• Canada's Digital Charter: Trust in a digital world

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SOURCE Innovation, Science and Economic Development Canada

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