Thank you, Mr. Chair and esteemed members of the committee, for allowing us the opportunity to provide our comments on the review of PIPEDA from a retail perspective.
The Retail Council of Canada, RCC, has been the voice of retail in Canada since 1963. A not-for-profit, industry-funded association, we represent over 45,000 storefronts of all retail formats, including department, specialty, discount, and independent stores; grocers; and online merchants. Retail employs approximately 2.2 million Canadians, and as such is the largest private sector employer in the country.
I am the vice-president of the grocery division and regulatory affairs for RCC. This means that I am responsible for coordinating a range of regulatory files that impact retailers as sellers of products, as private label owners, or as employers. I manage files from food safety to consumer product safety, from drug labelling to regulatory co-operation. This includes matters such as anti-spam regulations, as well as digital privacy and security.
While we are not in a position to comment on the intricacies of PIPEDA, we are pleased to offer some general observations from a retail perspective. Generally speaking, in our view PIPEDA strikes the right balance between taking actions to protect digital privacy and taking a forward-thinking, technology-neutral approach.
As you know, a core concept in the legislation is that of consent. This is a very valid principle. We understand that the Office of the Privacy Commissioner held consultations on the issue and will be releasing a report later this year, and we would be pleased to participate in any consultations the commissioner may consider on guidance around valid consent.
Another core principle of PIPEDA is the mediator/conciliatory partner approach. This approach has a proven track record of working very well. In fact, our members have indicated that they can be and indeed are much more forthcoming in this context than they could be in a more formal, legal context. After all, we are all seeking the same goal: customer trust. Consumer trust is the core incentive to strong privacy protections, not expanded legislative powers and penalties.
RCC members are very aware of privacy issues and take their consumers' information very seriously. From our perspective, additional prescriptive requirements or enforcement powers would accomplish little in this regard, except to add to compliance costs.
RCC members spend a lot of time and effort trying to ensure that their systems are safe. However, the sophistication of hackers and scammers knows no limits and, despite best efforts, they will continue to find ways to circumvent the security systems that lawful businesses have put in place.
Unfortunately, it is easy to blame businesses that try to protect the information they have, because in most instances they can be located and the scammers cannot. Creating stricter requirements and broadening enforcement powers would unfortunately do little to change this situation, except to increase the cost of doing business in Canada.
RCC supports the current collaboration and communication between the Office of the Privacy Commissioner and provinces that have their own privacy legislation, and would hope that this continues as other jurisdictions consider legislating in this area. This would avoid the potential for uncoordinated and inconsistent reporting requirements.
Finally, it is important to remember that consumer data benefits consumers and Canadian businesses alike. Consumer data allows companies to understand what makes individual consumers tick and enables them to tailor and offer products that consumers may want to buy. It shows societal trends, which allows them to adapt their businesses and product offerings. It may indicate where bricks-and-mortar locations might be appropriate. It is useful for feedback on their business: where it went wrong and where it went right. Consumers can benefit through the steps companies take to improve the products they offer based on information they gather. Targeted advertising, when appropriately consented to, can reduce the time consumers spend looking for products by focusing on the things of most interest to them.
To conclude, retailers are supportive of PIPEDA and its technology-neutral approach. It has a proven track record.
Thank you again, Mr. Chair and members of the committee, for the opportunity to be here today.