I think it's safe to say that social media companies are participating in a developing culture regarding privacy. For example, I've been focusing on privacy for almost a decade. From a privacy standpoint, the notion of providing a website with a list of all your contacts and the events you happen to be going to and pictures of friends would have been unthinkable 10 years ago, yet today it is fairly widespread. Even the initial news feed was fairly controversial when Facebook offered it, and a number of folks screamed that this was a privacy invasion.
Both from a legislative and a regulatory perspective, it's a delicate balance to define the balance between stifling innovation and protecting consumer privacy interests. Fortunately in Canada, while I don't claim to be an expert in Canadian privacy law, I do know that a pretty comprehensive framework is in place already, and a self-regulatory program is going to be launched within the next several months.
From my perspective, it would be a very good idea to see how that program develops prior to taking proactive steps. At least give the industry the opportunity to demonstrate that this is in the consumer's interest.