Bill C-475 (Historical)

An Act to amend the Personal Information Protection and Electronic Documents Act (order-making power)

This enactment amends the Personal Information Protection and Electronic Documents Act to, among other things, give the Privacy Commissioner the power to make compliance orders and the Federal Court the power to impose fines in cases of non-compliance.

Personal Information Protection and Electronic Documents Act

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I would like to congratulate my colleague from Terrebonne—Blainville for her speech and especially for the bill she has introduced.

I trained as an archivist and part of my training dealt, of course, with the protection of personal information. This field has expanded quite a bit over the years. It was an important consideration for more traditional mediums such as paper documents and electronic documents before the Internet era. What is really frightening is the proliferation of means of exchanging this information with total impunity.

Could my colleague give us an idea of how complex this can be, of just how many opportunities for sharing, stealing or distributing personal information there can be?

[Charmaine Borg, NDP, Terrebonne—Blainville, QC]

Mr. Speaker, in the digital age, the personal information we provide is disclosed and transferred from person to person very quickly. It takes just milliseconds. There is a real risk.

The other thing is that there is so much personal information in such a huge data base as the Internet, and everyone can have a certain amount of access with an electronic hacking tool. That is why it is important to put in place a system that will notify people if an organization is hacked. We have to be able to inform people that their personal information has been stolen in order for them to protect themselves.

[Mike Lake, Conservative, Parliamentary Secretary to the Minister of Industry]

Mr. Speaker, I am pleased to speak to private member's Bill C-475 as presented by my hon. colleague from across the aisle.

Bill C-475 proposes to amend the Personal Information Protection and Electronic Documents Act known as PIPEDA, a law that has been in place for over a decade. PIPEDA has proven its value and retained its relevance in the face of unprecedented technological change.

At its core, PIPEDA gives individuals control over whether and how their personal information can be collected, used or disclosed during commercial activity. This protection fosters trust and confidence in the online marketplace, an important part of the Canadian economy that is growing by leaps and bounds.

The government is committed to updating PIPEDA. In fact, the Minister of Industry met with the Privacy Commissioner only yesterday. However, any changes that are proposed should have been discussed thoroughly with business, consumer advocates and academics or fall within the framework of the existing legislation, as is the case with the former Bill C-12. The proposed new measures put forward in Bill C-475 were not. The proposed amendments in Bill C-475 give the Privacy Commissioner new powers and present a major change to PIPEDA and the role of the commissioner. The impact of such a change on all stakeholders has not been considered.

The Privacy Commissioner's role as defined in PIPEDA is to serve as an ombudsman, a role she has performed impressively to the great benefit of Canadians. Indeed, the commissioner has been internationally recognized and applauded for her success. It was in recognition of this that her term was extended to three years in 2010.

As the commissioner's term enters its final months, the government is pleased to have this opportunity to express its gratitude for the commissioner's dedication to the protection of the privacy of Canadians.

Let us begin by highlighting some of the successes so far. PIPEDA's ombudsman model has proven very successful in setting a high standard for the protection of personal information in Canada. PIPEDA allows for mediated solutions to privacy conflicts that can give both individuals and companies a clear understanding of their rights and responsibilities. A less formal dispute-resolution mechanism is far less intimidating for individuals and easier for them to navigate.

PIPEDA's current oversight and redress regime reflects a deliberate decision by Parliament to adopt a mechanism that avoids litigation when resolving privacy disputes. PIPEDA also provides the Privacy Commissioner with a range of powers to address privacy issues. She can investigate, enter premises and compel evidence, mediate a settlement, make recommendations, publish the names of those who contravene PIPEDA and take matters to the Federal Court.

Bill C-475 would give the Privacy Commissioner new, quasi-judicial enforcement powers. Unfortunately, the enforcement regime proposed by the private member's bill is fraught with procedural failings. As my colleagues will note, the bill contains a list of consequences for non-compliance. This includes a monetary penalty of up to $500,000, a very significant amount.

However, should penalties imposed on small firms be as large as those for multinationals? Unfortunately, the bill completely overlooks this matter. The size of the firm or its ability to bear the burden of monetary penalty is apparently not a factor to be considered.

Given the potential severity of the monetary penalty, it is also puzzling to observe that this particular remedy only applies to failure to comply with orders. Indeed, organizations that have been found to wilfully violate the privacy of individuals, including those that have profited significantly from the violation, are not subject to this penalty. They are only penalized if they have failed to change their ways after having been caught. There are many outstanding issues and questions with respect to the enforcement measures that are being proposed in Bill C-475.

PIPEDA already provides the Federal Court with the ability to provide any remedy it deems appropriate, including orders to correct practices, award damages, or order offending parties to publish a notice of corrective action. Clearly, PIPEDA establishes a comprehensive process for taking action against privacy violations. Businesses, both large and small, together with individuals, have found much success in the resolution of their disputes.

We must ask, then, how the proposed enforcement measures are going to affect the level of co-operation that exists between organizations subject to PIPEDA and the Privacy Commissioner. Would the enforcement regime of Bill C-475 change the current dynamic between organizations subject to PIPEDA and the commissioner, making the parties more adversarial and the process counterproductive? These are questions that cannot be taken lightly.

Finally, the implications of these new powers on the structure and resources of the Privacy Commissioner's office do not seem to have been considered during the drafting of Bill C-475. The new powers would place an undue burden on personnel within the Privacy Commissioner's office. One cannot simply add new enforcement powers to a law without thorough study and consideration of the impact on its existing oversight regime or on its regulator.

We cannot support Bill C-475. There are too many omissions and fundamental questions left unanswered in this bill.

In spite of the difficulties with this private member's bill, though, the issue of compliance with PIPEDA certainly warrants further exploration. The government will continue to send a strong message about the importance of complying with PIPEDA, given its critical role in building trust and confidence in the online marketplace. Furthermore, there must be an opportunity for all Canadians with an interest in privacy issues to be comprehensively canvassed and thoroughly heard.

To conclude, the government does not support private member's Bill C-475. Instead, the government remains committed to updating PIPEDA in a more considered and comprehensive manner. Our government will have a balanced approach, one that takes seriously the protection of private information while establishing a regulatory framework that is workable for businesses.

[Scott Andrews, Liberal, Avalon, NL]

Mr. Speaker, it is a pleasure to contribute to this debate today. I listened to the parliamentary secretary speak to the bill. He left out a few interesting facts.

Bill C-12, which was the government's bill, was introduced in 2007. Five long years have passed since then, and the government has not kept its commitment to changing PIPEDA and making the necessary changes. Twice the bill has fallen off the order paper. The government has not been taking PIPEDA very seriously at all.

I commend the member for bringing forward the bill. It would deal with two small measures. First, it talks about reporting the loss or disclosure of unauthorized access to personal information. Where a reasonable person would conclude that there exists some possible risk, the commissioner would have to be notified. The other part would give the commissioner some actual teeth to dig in and fine when personal information is lost.

We, as a government, are falling behind the rest of the world when it comes to protecting people's privacy.

I find it comical that the parliamentary secretary says that PIPEDA has kept its relevance. I am going to quote Commissioner Stoddart with respect to its relevance. She stated:

Back in 2001, when PIPEDA began coming into force, – and even when I became Privacy Commissioner in 2003 – there was no Facebook, no Twitter and no Google Street View. Phones weren't smart. “The cloud” was something that threatened picnic plans. And predictive analytics was largely the domain of tarot card readers.

A lot has changed since 2001, and our PIPEDA legislation just has not kept up.

This is a good start. It would give the commissioner more enforcement powers. Currently the commissioner can only publicly shame a company for breaching PIPEDA. It is time for the commissioner to have the strong enforcement powers needed. Some of that may have been contained in the government's bill, Bill C-12, but that bill has not seen the light of day.

Bill C-475 is with us now. It is something we need to refer to committee. We need to update our privacy laws, and we will be supporting the bill.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, I am very pleased to speak in support of the bill introduced by the member for Terrebonne—Blainville. Earlier, I congratulated her on her work, because we all agree that this is a very complex issue, as I said when I asked her a question.

It is rather amazing to realize that the Personal Information Protection and Electronic Documents Act has not been updated since 2000. At the risk of showing my youth, which I really do not need to do here, the last time this bill was updated I was at the ripe old age of 12. We can see how much the technology has changed, particularly in relation to the legislation as a whole.

In my view, it is completely absurd to claim that we can keep going as we are with Facebook, Twitter and iPhones. We could stay here all night just listing all the changes in technology.

Indeed, all we had to do was listen to the news this morning, not to point fingers. Of course, there are all kinds of practices, but there was one news item about what Bell does with the personal information of its customers. I am not necessarily blaming the company. I think it falls to us, the elected politicians, to assume our responsibilities—but more particularly to the government to assume its own—and implement legislation that will provide better protection of our personal information in the digital age, which is also an age of uncertainty.

What I have found in discussing this issue with my constituents is that there is a lot of confusion. There is a lack of knowledge, and it is not because my constituents are uninformed on the subject. On the contrary. It is difficult to keep the legislation in line with what the Privacy Commissioner, among others, has already said about what should be done. There is quite a hodge-podge of information.

My colleague is proposing we update the law and bring it in line with recommendations from the Privacy Commissioner, for one. I know that this is not the only element, but it is a striking one because we often see the commissioner's proposals in the news. Obviously, this one jumps out at people who are following this issue.

I really appreciate an important component of this bill, which addresses the idea of coordinating our legislation with that of other countries to ensure that we are keeping up with what is happening around the world. In the digital age, privacy knows no boundaries.

Consider this scenario: someone could subscribe to an Internet service that is based in the United Kingdom. Imagine that the individual's information is compromised; questions are raised about the Canadian government's power to protect that individual's private information. We need to recognize that borders are disappearing in the digital world. We need to take that into account when we update our laws. That goes without saying.

In the question I asked my colleague earlier, I spoke about another aspect that I want to touch on in my speech, and that is the fact that this issue is not bound by age. It is not limited to a single generation.

There is a tendency to think that Facebook is for young people. Similarly, we think that seniors are the ones maliciously targeted by fraudsters. However, it is not that cut and dried. Just as there are no borders—as I said when I was talking about the international component—fraud and privacy breaches are not limited to one generation more than any other.

I want to come back to the example that I gave in my earlier question. While discussing various suggestions with students, for example, we often ask them what they can do to better protect themselves on the Internet.

Canadians can and must have proactive habits, both on the Internet and elsewhere. However, the federal government must also enact legislation that has more teeth in order to allow for more appropriate punishments for businesses that do not perform their due diligence. We put our trust in them when we give them our personal information, which is vulnerable to fraud. Unfortunately, for a few years now, people are realizing that trust and good faith are not enough. The federal government has a duty to legislate in this regard, which is what this bill does.

In my speeches, I often give examples of all kinds of issues raised at the seniors' forum in Chambly, which I attend every year. This event really captures a wide range of issues that matter to seniors. For me, as a member of Parliament, it is an excellent way of knowing what is going on with seniors and of understanding their concerns. Every year, there is always a portion of the event that addresses fraud and elder abuse.

Considering the world they grew up in, seniors do not always know how to protect themselves online, despite their best efforts. I do not think it is unkind to say so. As I said, seniors recognize this themselves and are demanding that the government do something in order to ensure that, when they hand over their personal information to a website or company, it will be protected.

This also applies to cellphones. More and more seniors are using this technology, which is a good thing, because we want them to be able to participate in this technological aspect of our society. We need to do our duty, as elected representatives, to ensure that they can do so safely, while recognizing that they need to be proactive, just as younger people need to be. The need for citizens to be proactive does not relieve legislators of their responsibility to do their part to ensure that laws are in place and that companies cannot run around with people's personal information, since this could lead to bad situations.

I would even say that this issue has been one of the government's weak points. I would also like to point out that privacy is a very hot topic at the moment. Many of my constituents really care about privacy. My colleague for Terrebonne—Blainville has often raised other issues related to the digital age. Clearly, the government has not done enough when it comes to improving the legislation or acting proactively as federal MPs to take advantage of the digital age.

Consider the lack of information about the lost student loan data and other situations at Service Canada. These situations show that the government is not proactive enough and is not making necessary improvements.

Luckily, my colleague is being proactive by introducing her bill as digital affairs critic for the NDP. She is also working on our digital strategy. I commend her on her work and I am proud to support her. I know my constituents will feel much better knowing that at least one party is taking a firm stand on this issue.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Speaker, it is a pleasure for me to to speak on Bill C-475 on the issue of privacy and digital communications.

The whole privacy issue has been a thorny one for the Conservatives. Last year they had Bill C-30, the online snooping bill, which triggered a huge countrywide backlash. Many Canadians were concerned about that bill because it proposed some very serious invasions of privacy and was an attack on the fundamental rights and freedoms of Canadians.

Privacy is also an issue because increasingly we have seen that many federal government departments, including HRSDC and Indian affairs, have lost personal information they have collected from Canadians. However, the good news for Canadians is that the NDP digital affairs critic, the MP for Terrebonne—Blainville, has been on the job defending the interests of Canadians. We thank her for introducing Bill C-475, which is an excellent response for our times to the issue of digital privacy and personal information.

Bill C-475 responds to a number of calls for greater security for public information. In the ethics committee last year there was a study on social media and privacy, led by the NDP. That committee and that study heard numerous calls from the Privacy Commissioner of Canada, legal experts on Internet security, consumer protection groups, and concerned citizens for the need to update the Personal Information Protection and Electronic Documents Act, a lengthy act that is commonly known as PIPEDA. There are many ways this act can be updated, but the fact is that it has not been updated since the year 2000.

If we think back, the year 2000 was a long time ago, before the era of iPads and smart phones. It was a time when Canadians voluntarily shared much more of their information. Times have changed dramatically, but because our laws have not changed and have not offered Canadians more protection during that period, it is not surprising that more and more Canadians are losing confidence in the ability of the government to be able to protect their privacy when it comes to PIPEDA.

Before going into it in more detail, I will summarize what this bill would do. It would ensure, first of all, that Canadians would be notified if there was a breach in security with respect to their personal information if that breach could cause them harm.

It would also add new strengths to the compliance section. Right now the Privacy Commissioner does not have much in the way of power to enforce compliance, which is unlike the situation in many other countries in the world, so it would bring Canada onto a level playing field with many other countries.

The issue of online privacy is one of growing concern. We are now in the age of big data. Companies are data mining, gathering personal information from a variety of sources, and using it for marketing, for advertising, for personalized ads, for all kinds of measures. There is nothing to protect the privacy of Canadians. There is nothing to protect the personal data of Canadians when there is a data breach that could cause them harm.

What we found in the ethics study of this issue was that there is increasing commodification of this data, called big data, by companies online so that they can do marketing, in which this personal information is often collected, used and disclosed to other parties. The person whose information is collected often does not have any idea that this is even happening. They certainly did not give consent, and it is in violation of PIPEDA.

Throughout the ethics study, there were repeated calls by Internet and privacy experts and civil society groups to empower the Privacy Commissioner of Canada with enforcement powers and to introduce mandatory data breech notification. That is exactly what Bill C-475 would do.

I want to thank my colleague from Terrebonne—Blainville for her excellent work on this issue and her tailoring of the bill to really respond to this very recent study in updating this legislation.

Again, what Bill C-475 would do is give enforcement powers to the Privacy Commissioner of Canada. It would allow the Privacy Commissioner to order an organization that is found to be in violation of PIPEDA to undertake actions to comply with the act. If they do not comply with the orders within a timeline established by the commissioner, they could be liable to a fine of up to $500,000, as determined by the Federal Court. It is a very serious penalty if they are given the opportunity to comply with the act and fail to do so.

Second, it would introduce mandatory data breach notification where there is possible risk of harm to individuals whose information has been compromised. Individuals must be notified.

If anyone thinks these are by any means radical measures—I am sure they sound like a lot of common sense to Canadians—many other jurisdictions already have such measures in law. Countries such as the U.K., France, Germany and Australia and some provinces have this provision in law. British Columbia, Alberta and Quebec have commissioners responsible for data protection or privacy. They are equipped with enforcement powers to force organizations to comply with the law. It seems like good common sense. These enforcement powers for all of these other jurisdictions include administrative monetary penalties. Canada is behind the times when it comes to PIPEDA and the lack of enforcement and the lack of notification.

What are others saying about this legislation brought forward by our colleague from Terrebonne—Blainville? OpenMedia.ca executive director Steve Anderson said, “We welcome...[the MP's] online privacy bill.... This bill is a useful stepping stone to safeguard our privacy”.

Michael Geist, chair of Internet and e-commerce law at the University of Ottawa, a renowned public affairs commentator who often has a column in my local newspaper in Toronto, said:

Bill C-475 is a far better proposal.... Those provisions would do [sic] far to ensure greater respect for Canadian privacy law and give Canadians the assurance of notifications in the event of security breaches.

In conclusion, the people I represent in Parkdale—Hyde Park include many young artists, young communicators and people who work in digital media. I have heard many calls for this kind of privacy legislation. It is long overdue, and I would urge all members of the House to vote in favour of Bill C-475.

[Rosane Doré Lefebvre, NDP, Alfred-Pellan, QC]

Mr. Speaker, I am very honoured to rise today to speak to Bill C-475, which I will support at second reading.

First, I would like to speak to the work ethic of my colleague from Terrebonne—Blainville when it comes to digital issues. As the digital issues critic, my colleague has done a lot of work on a policy to better protect our personal information on the Internet. I appreciate the work she has done.

My colleague held a number of public consultations, which is important to note with this bill, since it has been well received by the public. If there is one thing that is very important and that the NDP puts a lot of emphasis on, it is public consultation. I know that most of my colleagues have held their own consultations in recent weeks and months on several issues that affect the Canadian public.

Digital issues, and privacy in particular, are extremely important issues that affect all Canadians. Later on in my speech I will talk about what the people of Alfred-Pellan, in Laval, have told me. It shows a good work ethic to consult the public, and we can create excellent bills that reflect what the public wants.

It is sad to see that, unfortunately, the federal government is not consulting the public about digital issues and our privacy. This issue is very topical and we must take it seriously. That is why public consultation is so important.

Bill C-475 would create modern protections for an issue for which it is extremely difficult to set parameters. I think that Bill C-475 achieves a very important objective: improving protections on the Internet.

The Privacy Commissioner has called for measures to be implemented on many occasions. My colleague from Terrebonne—Blainville included them in Bill C-475.

Therefore, we can say that we are listening to consumers. In fact, the Union des consommateurs supports this bill. I believe that it is very important to point that out. We have to crack down on Internet fraud and abuse. It is really important.

A little earlier, I heard a Conservative member on the other side of the House say that they are on the right track when it comes to protecting consumers and people's privacy on the Internet. Unfortunately, I doubt it. I will not give the Conservatives free reign, especially when it comes to consumer protection. Unfortunately, their record to this point strongly suggests otherwise.

We have a golden opportunity to have all parties in the House, no matter their political affiliation, work together to protect the privacy of Canadians, to all come together to work on a bill that I believe is extremely well researched.

Most people might think that the protection of privacy is assured and that we have a great deal of protection, especially when navigating the Internet. Unfortunately, that is not the case. There are no guidelines and we do not take action against the big companies that will take advantage of the system in order to use our personal information.

In that regard, I would like to talk about a few things that happened to us in Laval this past summer. I went door-to-door a great deal this summer in order to find out about the concerns of the constituents of Alfred-Pellan in Laval. Many issues were discussed during my visits. We talked about this earlier today. Many people talked to me about the Senate and abolishing it, and they told me that it will be a good thing when the NDP government abolishes the Senate in 2015.

People also talked to me about the bill introduced by my colleague from Terrebonne—Blainville. In fact, they raised questions about what we were doing to improve people's safety on the Internet. I found that extremely interesting and we had some good discussions about that.

I talked to a young man who is in a relationship and who just bought a house. He was very interested in our policies on Internet protection and not just consumer protection. He was extremely pleased to see that the NDP had a substantive bill on the subject.

During the summer, like many of my colleagues probably, I toured a number of old age homes. People were very happy to see us. We talked about protecting personal information. That is something that is very important to our seniors because, unlike a young woman like myself, they have not been immersed in all things Internet and social media since they were young. Many people do not have access to that and it is all new to them. These are things they have to learn. It can be hard for them to understand. I can see how it might be hard for them to use social networks and to cope with the fast pace of the Internet.

Often seniors tell me that they tend to be trusting and give out their personal information. Unfortunately, there are cases in my riding of people who have lost money and are being harassed because they gave out their personal information somewhere. They suddenly receive information they did not ask for from all sorts of people. It is upsetting to them.

These people were extremely concerned about protecting their information. I talked about this bill with them and they were glad to see that there is a party in the House of Commons that wants to review the rules and cares about their safety and protecting their personal information.

I think it is important that we reach out to them in this case because they are the ones who are affected the most.

My colleague from Chambly—Borduas talked a lot about seniors. I will not elaborate on that, but I will say that we must include them in this process.

As the hon. members for Chambly—Borduas and Terrebonne—Blainville said, the federal government has a responsibility to set parameters without necessarily being too tough. At some point enough is enough. There are ways to go about this that we need to oversee. The government has a responsibility and it must step up to the plate.

I studied what this bill contains in more detail because it addresses so many items. I found that it changed some very interesting things.

I saw that Bill C-475 granted, for example, powers of enforcement to the Privacy Commissioner of Canada, which is extremely important.

As I mentioned at the beginning of my speech, the Commissioner called for many changes and measures that we are dealing with right now. Any organizations that refuse to implement these measures within a timeframe set by the Commissioner would risk a fine of up to $500,000, according to a Federal Court decision.

At this time, there are no fines for a company or anyone who abuses on our social networks or the Internet. Putting these guidelines in place today prove that we are serious and we take privacy protection seriously.

There is also the fact that Bill C-475 would make it mandatory to report any data breaches that could harm the people involved.

I believe that this is another important item that we should pay special attention to.

I see that I am almost out of time, so I would like to list the stakeholders that have given us their support. As I mentioned at the beginning of my speech, the hon. member for Terrebonne—Blainville found during consultations that the Union des consommateurs supports our position. Aubrey LeBlanc, president of the Consumers Council of Canada, has come out in support of our position, as has Steve Anderson, executive director at OpenMedia. The National Association for Information Destruction Canada and the University of Ottawa's Canadian Internet Policy and Public Interest Clinic also agree with our position.

The list goes on and on. I believe that proves, as I said earlier, that we need to work together, tackle this problem, put partisanship aside for once, make the right decisions and support Canadians.

[The Deputy Speaker, NDP, Joe Comartin]

The time provided for the consideration of private members' business has now expired, and the order is dropped to the bottom of the order of precedence on the order paper.

The House resumed from October 22, 2013, consideration of the motion that Bill C-475, An Act to amend the Personal Information Protection and Electronic Documents Act (order-making power), be read the second time and referred to a committee.

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

Mr. Speaker, I am pleased to rise in the House to speak to Bill C-475, An Act to amend the Personal Information Protection and Electronic Documents Act (order-making power), which I will refer to as PIPEDA, to make things easier.

I want to begin by putting this bill into context. From May to December 2012, the Standing Committee on Access to Information, Privacy and Ethics conducted a study on social media and privacy. Numerous witnesses testified as part of that study, including Internet and privacy experts, privacy commissioners, community groups and others.

Those witnesses raised the point that more and more information is being gathered and used for business and marketing purposes. In fact, businesses collect this information, use it and share it without the consent of the individuals concerned, which is in violation of PIPEDA.

Given the concerns raised in committee by the many experts from various fields, the wonderful member for Terrebonne—Blainville introduced Bill C-475 in the House in order to try to respond to those concerns and observations from the community and strengthen the bill in question.

I would add that Bill C-475 is attempting to amend an act that has not been reviewed since 2000. Allow me to digress. I may belong to the last generation that can claim to remember the first day when a computer came into the house. This computer was not in colour and the screen was black and yellow and square-shaped, with blurry graphics.

I remember the first time I typed my homework on a keyboard. I was typing with two fingers and this was very time-consuming. I kept hitting the on/off button with my toe. I would always lose my work because there was no autosave feature for documents at that time. In short, I have a whole lot of memories that I might be able to share with my children and grandchildren one day.

In the meantime, I will point out that it is completely absurd that a privacy act has not been reviewed since 2000. I think I do not need to say more on that subject. It is high time we made changes to this act.

First, Bill C-475, which amends an act that needs to be updated, grants powers of enforcement to the Privacy Commissioner of Canada. Moreover, the commissioner herself emphasized that she wished to have these powers when she appeared before the committee. In other countries and in certain Canadian provinces, the law provides for measures that give more powers to the commissioner. However, this is not the case for Canada. We hope this will change soon.

Who is the commissioner and what powers does she have exactly? This is a good question, and it has to be answered before we say her powers must be increased. I will take the definition used by the Canadian Internet Policy and Public Interest Clinic of the Faculty of Law at the University of Ottawa, which describes the commissioner as follows:

The Privacy Commissioner of Canada acts as an ombudsman who investigates complaints and negotiates solutions.... While the Commissioner does not have the authority to order an organization to change their personal information policies or procedures she may make public any information relating to the personal information management practices of an organization.

That summarizes the commissioner's existing powers. Bill C-475 would enhance those powers.

The commissioner recommends that organizations that refuse to implement the measures she suggests be required to abide by the law and comply with deadlines set by the commissioner, and even be liable to a fine in cases of non-compliance.

The commissioner therefore needs a little more power over Internet-based offenders.

Bill C-475's second goal is mandatory reporting of all data breaches that could harm the individuals concerned. I do not need to go into detail about how the Internet is changing quickly and how now, young and old alike are putting more and more information out there. Things are changing quickly, and we have to ensure that we can keep up with it all, understand it and regulate it.

Companies collect, sell and share this information. Part of the solution is educating people and raising awareness about the kind of information they disclose on the Internet. Still, it makes sense that people should know what is being done with their information because, after all, that information can be very valuable to the companies that can use it. That is not a bad thing in and of itself, but there should be rules for using that information.

People who create a Facebook account are asked to supply quite a lot of information. They are not the ones who decide they want that information to show up on their Facebook page. No, there is a whole form to fill out that includes their year of birth, where they live, their address, favourite movies, favourite music and much more. That is just Facebook. I use Facebook because I am not very well-versed in using other technologies. I joined Twitter just a few months ago because my colleagues and assistants pressured me to. Things are going well so far, but there are still some concerns.

A closer look at the details of this bill, at what can and cannot be done, at the powers that the Canadian commissioner has compared to commissioners in other provinces and other countries, gives us reason for concern.

Perhaps I am a little paranoid when it come to technology, but when a window appears with a little red x, I am afraid to even click on it. I wonder if that will even close the window that just appeared without me wanting it to, or if I will be clicking on a link that will give information to some company, or what have you. You know what I mean. It is hard to know what we can even trust anymore. It is not only what I decide to disclose myself, but it goes much further in terms of what information can be collected, whether we like it or not. Information can even be collected without us knowing.

It is therefore high time that we took action to update the Privacy Act.

It is this government's responsibility to move forward on this, and quickly. Things are changing fast, and we need to take a first step. This bill might not solve everything, of course, but it does address some of the concerns expressed by experts and by the commissioner herself in the parliamentary committee's examination. I really hope the government will bring forward something like this. It would be the least it could do.

In closing, I would like to point out that the Union des consommateurs believes that the implementation of the principles proposed by the NDP, through their private member's bill amending the Personal Information Protection and Electronic Documents Act, constitutes a real advancement to better protect the privacy of consumers.

I would also like to commend the enthusiasm of my NDP colleague from Terrebonne—Blainville and congratulate her. She has demonstrated her competence in managing this file for our party. She has remained very open and co-operative, and has been extremely innovative and dynamic in her collaboration with stakeholders from all walks of life in this file. She has introduced a very important bill, and I hope that we can continue for the well-being of current and future generations, in order to bring in extraordinary technologies, which can sometimes cause us some concern.

[Ed Holder, Conservative, London West, ON]

Mr. Speaker, I have had many occasions in my years in Parliament to speak in this House, but never at such an auspicious time. Oh my gosh, when I hear that Nelson Mandela just passed away, I want to share a personal experience, if I might.

My family used in live in South Africa, and much of it still does. They are white South Africans, and they lived there through Nelson Mandela's rise to power. He could have been many things, but he was a great humanitarian. He was forgiving when many might not have been. He was compassionate and understanding when others might not have been. As I make my other comments, they almost seem subdued compared to the very real experience of Nelson Mandela's impact on the world. Others will say things more articulately than I, but I will say that if the world could be measured by the quality of what Nelson Mandela brought to humanity, this would be a much better world.

I will speak now to Bill C-475 and its impact on organizations and the public. Of course, I am referring to Canada's private sector privacy law, the Personal Information Protection and Electronic Documents Act, otherwise known as PIPEDA, which the bill looks to amend.

PIPEDA was developed with an important objective in mind, and that is balance. The act is designed to balance an individual's right to privacy with an organization's need to collect, use, or disclose personal information for legitimate business purposes.

I was president of a large company in London, Ontario, when PIPEDA was first introduced. For those who do not know, that is the tenth-largest city in Canada. I would say we invested considerable funds, as did corporations across Canada, to ensure compliance and to do the right thing, because a corporation must be measured in terms of being honourable and doing the right thing. The costs associated with PIPEDA then and now are very real and ongoing, but in a corporation's business it is important to comply, for the sake of the public, which is what we are talking about in terms of this legislation today.

When PIPEDA was first introduced, the government stated that in order for Canada to become a leader in the knowledge-based economy and in electronic commerce, consumers and businesses had to be comfortable with new technologies and the impact that these technologies would have on their lives. I believe that policy objective still stands. However, in order to maintain that important balance in PIPEDA, we must consider the burden imposed by the proposed requirements of this act and always weigh that burden against the corresponding benefit to society.

We all agree that requiring organizations to report certain data breaches is necessary. Data breaches can pose a serious threat to the protection of our personal information and to the security of organizations and individuals. Reporting certain data breaches publicly would allow individuals to protect themselves, and it would also encourage better data security practices by organizations. That is laudable, yet it must said that there are ways to achieve these goals without creating an undue burden on organizations and the Privacy Commissioner.

Data breach notification has the potential to be cost-prohibitive while not providing the kind of information the public requires. For example, in the United States, where this process is tracked closely, the average cost to an organization of a single notification is estimated at $188 per record, and when this figure is multiplied by the number of those potentially affected, any data breach notification could result in substantial cost to companies that must deal with that breach. Based on this data, the total average cost of a data breach to an organization is approximately $5.4 million.

As most states have mandatory reporting of data breaches, there are hundreds of breaches reported every year. According to the Privacy Rights Clearinghouse, an organization that tracks this, there were 592 breaches reported by the private sector in the United States last year. These incidents involved the information of more than 11 million individuals. That number is extraordinary. As organizations south of the border are required to notify so often, notification fatigue among the public can be a serious result.

When notification processes become simply a matter of sending out a form letter to individuals, there is always a deep concern that these letters become increasingly perceived by recipients as junk mail. We have learned from the experience of other jurisdictions. That is why this government believes the best approach to notification is one based on risk, where notification should be required only for those breaches that represent the potential for significant harm to individuals. In this way, consumers would only receive notifications when necessary and would accord them the attention they deserve, instead of seeing these messages as unwanted spam. What we are talking about here is modernization, not overhaul, as proposed Bill C-475 suggests.

The Privacy Commissioner has been a strong advocate for data breach notification. I would like to point out, however, that even she has not asked to be informed of all breaches, nor has she asked for the responsibility to determine the need for notification of when there is a breach. In fact, in her paper on the reform of PIPEDA published earlier this year, the commissioner proposed that organizations be required to report breaches “where warranted”. This suggests that the commissioner understands the burden of overnotification and supports an approach that would minimize that burden. That is modernization, not overhaul.

Unfortunately, this is not the approach taken in Bill C-475. The bill would require organizations to report to the Privacy Commissioner every data breach posing a possible risk of harm. The average organization is risk-averse, and will err on the side of caution. I know that from my own business experience. As a result, it is likely that all breaches would be reported under these circumstances, undoubtedly resulting in notification fatigue among consumers. Under Bill C-475, the commissioner would have to assess each incident reported to her and determine whether it poses an appreciable risk of harm, warranting notification to individuals. This would impose a financial and administrative burden on the commissioner's office and would likely limit its ability to deal with other complaints under the act.

In the province of Alberta, where the data breach reporting has been in place for two years, the office of the Alberta privacy commissioner has estimated that the average time to process a reported breach and determine whether notification is required is 76 days. In the case of more complex data breaches, this could be much longer. This indicates that the risk assessment process is complex, difficult, and ultimately costly.

My colleague, the hon. member for Terrebonne—Blainville, has provided us with much to consider, including some statistics on data breach incidencts. According to my hon. friend, there are 18 privacy breaches every year for every publicly traded company in Canada. We know there are over 3,000 companies traded on the Canadian-based stock exchanges. That would amount to a minimum of 54,000 data breach incidents every year. Given the number of days to assess a single data breach incident, it does not serve the public interest to process each of these 50,000 incidents each year.

Let us remember that the intent is to provide Canadians with timely information about a breach of their personal information so that they can take steps to avoid fraud, identity theft, and misuse of their personal information. I sense the intent of my colleague opposite, but it is not clear to me that my hon. friend has fully considered the administrative and resource implications of dumping this requirement on the Privacy Commissioner's office, and whether it is in the public interest of Canadians to receive so many notifications.

The government is committed to an approach that would require the organization experiencing a breach to conduct the risk assessment based on the sensitivity of the data and the probability that they have been or will be misused. The organization is in the best position to quickly assess the circumstances surrounding a breach of its security safeguards and to determine the risks involved. The government believes that organizations should notify the commissioner and affected individuals of certain breaches, those posing a real risk of significant harm. This allows the commissioner to retain oversight of how organizations are handling the process of risk assessment and notifications to individuals. The commissioner would have the option of initiating an investigation if it were believed that notification did not occur when it was required.

In closing, with appropriate oversight and guidance by the Privacy Commissioner of Canada, the responsibility for determining risk and the need for the notification of individuals should ultimately rest with the organization. I hope I have clarified for members the benefits of a more balanced approach to data breach notification. Again, it is modernization, not overhaul.

I hope colleagues will agree that the approach taken by Bill C-475 would impose unnecessary costs and has the real risk to potentially undermine the primary objective for data breach notification, which is that of providing timely information to individuals when there is truly a risk of harm.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it is a pleasure to rise, but before I provide comment on Bill C-475, as other members have, I just want to reflect on Nelson Mandela, who is now deceased at age 95.

The world has lost a great leader. Many would argue he was one of the greatest leaders we have seen in the last hundred-plus years. Nelson Mandela served as the president of South Africa between 1994 and 1999. We think about where he came from. He went to jail back in 1962, which happened to be the year I was born. Then in 1990, 28 years later, he was released only because of international pressure from around the world in recognizing Mr. Mandela. He came from that situation to ultimately becoming the president of South Africa and everything that happened in between, such as his significant role in abolishing apartheid.

We have lost a world leader today, an inspiration not to millions but ultimately to billions over the years. It is most tragic. I give my personal very best to all who have been affected.

Dealing with Bill C-475, it is important for us to recognize a few things. First and foremost, the issue of personal information is on the top of many minds. The idea of identity theft is prevalent. We know it is a very serious issue. It happens on a daily basis. Just recently we were talking about cyberbullying, as an example. The technology is out there, and the criminal element is causing a great deal of discomfort for a lot of people in dealing with personal information.

The public as a whole does not believe that the government is doing enough to protect privacy, and the public is watching. This is why I found the previous speaker's comments interesting as he started to outline some of the costs and concerns that he has with regard to Bill C-475—

[Some hon. members]

Oh, oh!

[The Acting Speaker, Conservative, Barry Devolin]

Order. Could hon. members come to order, please? The hon. member for Winnipeg North has the floor, and I would ask all hon. members to refrain from causing a disruption in the chamber.

The hon. member for Winnipeg North.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, in dealing with Bill C-475, it is important for us to recognize that there are some concerns that should and could be easily addressed by allowing the bill to be sent to committee. I would argue that there is a significant advantage if we allow that to take place. The simple reason is that there is a need for more debate. When we go into committee, different stakeholders will be able to get more of the facts on the record. When we talked about the Privacy Commissioner and the additional workload there, I can respect that. We want to hear what the facts are. We do not want to make it overly awkward, costly, and just not practical in some cases. With Bill C-475, we have an opportunity to move forward.

Members will remember earlier this year when literally thousands of student records were released. There was a huge concern all over the country. There were student loan records that were found to have been misplaced or had fallen into the wrong hands. We know that many people were directly affected by it. The government, somewhat kicking and screaming, had to acknowledge its role in not being forthright in releasing that information.

I believe there is some merit to the bill. When we take into consideration the concern that Canadians have as a whole related to the issue of personal information and wanting to see government doing more, I do not see what we have to lose by allowing the bill to be sent to committee.

I chose to stand up for two reasons. One was to emphasize the point that we should allow the bill to be sent to committee. At the same time, as I indicated at the beginning of my remarks, I wanted to get on the record the passing of a great man, Nelson Mandela. I am sure there will be more formal positions taken by many dignitaries around the world in recognition of this iconic world figure.

With those few words, I am prepared to leave it at that, in the hope that we will see the bill succeed and be sent to committee where we can hear the thoughts of different stakeholders as to what we could be doing to ensure that we are protecting the personal information that people have entrusted to either the government or the private sector. We need to do more. This bill will not necessarily answer all of the problems, but it will at least provide a venue for us to make some changes that could improve our current system.