As Canada moves closer to the implementation of Bill C-27, the Digital Charter Implementation Act, small business owners should prepare for significant changes to privacy laws that will impact how they handle personal information. The key piece of this legislation, the Consumer Privacy Protection Act (CPPA), will replace parts of the Personal Information Protection and Electronic Documents Act (PIPEDA) and introduce stricter regulations and new obligations for businesses.
Here’s a few highlights of what small business owners can expect and what they should do to prepare:
- Privacy Management Programs
The CPPA will require all organizations, including small businesses, to establish and maintain a privacy management program. This program will need to detail the policies, practices, and procedures for ensuring privacy compliance. Most of which will concern the information security processes and tools your business has in place to safeguard information from unauthorized access, alteration, disclosure or destruction. Business owners will need to document how personal data is collected, used, and disclosed, and ensure that adequate processes are in place for addressing complaints and concerns.
Tip: Start by reviewing your current privacy and information security policies and create a structured program. Consider seeking advice from security professionals or legal services to guide the development of a comprehensive privacy policy and management procedures.
- Purpose and Consent Requirements
Under the CPPA, businesses must collect, use, and disclose personal information only for specific, appropriate purposes. Unlike PIPEDA, the CPPA will set out detailed criteria for determining what is deemed “appropriate.” Additionally, there will be new requirements surrounding consent, including more stringent guidelines for obtaining it and specific exceptions for certain business activities.
Tip: Review your current data collection and consent processes. Ensure that your consent practices are clear, transparent, and in line with the new criteria set by the CPPA. Make sure customers are aware of what their data will be used for and how they can withdraw consent.
- Children’s Privacy
The CPPA explicitly recognizes minors’ personal data as sensitive and imposes additional requirements for collecting and handling information about children. This includes ensuring proper safeguards and disposal obligations for data related to minors.
Tip: If your business collects data from children or minors, be sure to adjust your processes to comply with these new protections. This may involve revising consent forms or implementing age verification mechanisms on your website or services.
- Stricter Penalties
The CPPA introduces significant penalties for non-compliance, including administrative monetary penalties of up to 3% of global revenue or $10 million for violations. Serious contraventions could result in even higher penalties, up to 5% of global revenue or $25 million. The Privacy Commissioner will also have expanded powers to audit organizations and enforce compliance.
Tip: Small businesses should focus on compliance to avoid costly penalties. Regular audits of data protection practices and ensuring all staff are properly trained on privacy policies will help mitigate risk.
In conclusion, the CPPA will bring significant changes to how small businesses handle personal data. This comes with stricter requirements for privacy management, consent, and individual rights. By starting to prepare now—updating privacy policies, ensuring consent practices are clear, and training staff—small business owners can ensure compliance and avoid costly penalties when the CPPA takes effect.
