New Canadian government bill proposes expanded rules on privacy and AI

The Minister of Innovation, Science and Industry, François-Philippe Champagne, and the Minister of Justice, David Lametti, presented on June 16 the “2022 Digital Charter Implementation Act” to strengthen Canada’s privacy laws, create new rules regarding artificial intelligence (AI) and more.

The law includes three proposals. First, the proposed Consumer Privacy Act (CPPA) aims to protect the privacy of Canadians by establishing clear rules on how organizations can handle personal information.

Second, the Personal Information and Data Protection Tribunal Bill will create a new tribunal to enforce the CPPA.

Finally, the proposed Artificial Intelligence and Data Act (AIDA) will introduce new rules regarding the development and deployment of AI systems.

CAPP will help harmonize Canada’s privacy law with international partners

In a press release, the government outlined some of the objectives of the CPPA, which will eventually replace the Personal Information Protection and Electronic Documents Act (PIPEDA) once passed. It should be noted that a previous version of the Digital Charter introduced in 2020 was considered a “step back” by Privacy Commissioner Daniel Therrien.

CAPP will increase control and transparency over how organizations handle the personal information of Canadians. For example, it will require companies to provide plain language information about how they use Canadians’ data so that Canadians can give meaningful consent.

In addition, the law will give Canadians the freedom to securely transfer information from one organization to another.

One of CAPP’s primary goals includes the protection of minors, such as limiting the ability of organizations to collect information about minors. The law aims to impose a higher standard on organizations that process minors’ information. Another part of this goal will be to ensure that Canadians can request that their information be deleted when it is no longer needed (parents will be able to make these requests on behalf of minors).

At the same time, CAPP will confer broad order-making powers on the Privacy Commissioner of Canada. These powers include the ability to force a company to stop collecting data or using personal information.

Finally, CAPP will establish penalties for organizations that do not comply. Fines can total up to 5% of global revenue or $25 million, whichever is greater, for the most serious violations.

Canada will have an AI and data commissioner

One of the main benefits that AIDA will introduce will be a new AI and Data Commissioner. This commissioner will assist the Minister of Innovation, Science and Industry in fulfilling the responsibilities of the act. For example, this includes monitoring company compliance, commissioning third-party audits, and sharing information with other regulators and regulators.

ACRA aims to protect Canadians from the potential harms of AI by establishing rules to ensure that the development and deployment of “high-impact AI systems” mitigate harm and bias. In addition, AIDA will outline clear prohibitions and criminal penalties regarding the use of illegally obtained data in AI development, reckless deployment of AI that can cause serious harm, and fraudulent intent to cause substantial economic losses through the deployment of AI.

The Canadian government has posted details of the Digital Charter Implementation Act on the Innovation, Science and Economic Development (ISED) website, including text and visual summaries of the bill. you can find that here.

You can find the full bill here.

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