Canada's proposed privacy law moves to second reading in the House of Commons

Bill C-27, the Digital Charter Implementation Act, 2022, was raised for debate at second reading in the House of Commons on Friday, November 4. The bill would enact the Consumer Privacy Protection Act (CPPA), the Personal Information and Data Protection Tribunal Act (PIDPTA), and the Artificial Intelligence and Data Act (AIDA). Read our complete summary of the most significant aspects of Bill C-27.

The Liberal government laid out its case for the bill on Friday, stating that Parliament must enact substantial privacy law reform to bring Canada’s privacy regime into the 21^st century.

While opposition parties agree with the principle of Bill C-27, they highlighted numerous areas of concern and are pushing for a thorough study of the bill at committee.

“Consumer trust” was a key theme during debate in the House of Commons. Study and deliberation moving forward will likely focus on how private sector organizations – and legislators – can improve consumer trust through measures contained in Bill C-27.

The Standing Committee on Industry and Technology (INDU) will study Bill C-27 if it passes second reading.

The government’s position

Minister François-Philippe Champagne, Minister of Innovation, Science and Industry and sponsor of Bill C-27, stated on Friday that the bill serves four principal objectives:

Gives people more control of their data online;
Protects children’s information;
Addresses the responsible use of artificial intelligence (AI); and
Brings Canada’s privacy laws into the 21^st century.

In his speech in the House of Commons, Minister Champagne stated that Canada would be among the first countries in the world to pass comprehensive legislation on AI if Parliament passes the AIDA. In response to media questions about criticisms of the AIDA, Minister Champagne asserted that the government consulted widely when drafting the proposed legislation, and will not be deterred from pursuing the passage of AI provisions in Bill C-27.

Minister Champagne stated in his speech that he is most proud of Bill C-27’s protections for children’s information. The CPPA would define the personal information of minors as “sensitive,” which would carry more extensive obligations for the collection, use, and disclosure of that information.

Minister Champagne emphasized that Canada would have some of the toughest penalties for non-compliance with privacy laws in the G7 through new enforcement provisions contained in the bill.

He further argued that the bill effectively balances privacy interests with the need for responsible innovation. The Minister suggested that this is particularly evident in the introduction of a “legitimate interest” exception to consent, including an associated backstop. The AIDA also promotes responsible innovation in the Minister’s view, because the act would build trust and mitigate risks presented by high-impact AI systems (high-impact systems are not currently defined in the bill, but will instead be defined later through regulation).

Minister Champagne noted that it is critical for Canada to maintain its adequacy status under the European Union’s General Data Protection Regulation (GDPR). Modernised privacy laws will serve this objective.

He urged the House to send the bill to committee.

Opposition concerns…

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