44th Parl. 1st Sess.
March 7, 2023 10:00AM
Madam Speaker, there are a lot of things that overlap all three pieces of legislation that put them under one bill, especially artificial intelligence, which goes beyond one particular domain. It acts on almost every aspect of the Canadian economy and of Canadian society, and it permeates almost everything else it touches. That is the reason the government has brought in one single piece of legislation.
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Madam Speaker, this is my first opportunity to get in on the debate on Bill C-27 today, and I have to say that my thoughts resonate a great deal with those mentioned by the hon. member for Windsor West in his pointing out that this is three bills in one.
To focus on the part that is completely new, artificial intelligence, I find that there is a great deal of tautology when we look at the bill. For instance, it says that we will know what a high impact of artificial intelligence is if it “meets the criteria for a high-impact system that are established in regulations.” There are a number of other places like this, but we do not have regulations yet. When will we know what the bill means?
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Madam Speaker, I agree with the hon. member that there are a lot of things that could be explained much better, and I am sure this will be looked into at the committee level.
With respect to artificial intelligence, it is very difficult to define everything in the legislation, because it is a moving thing. Artificial intelligence is evolving on a daily basis, which is why it is best that we allow it to be done through regulations.
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Madam Speaker, we are here today to debate Bill C-27, the digital charter implementation act. With this bill, the government seeks to bring Canada's consumer privacy protections up to date, to create a tribunal to impose penalties on those who violate those protections and to create a new framework on artificial intelligence and data.
For my constituents, I think the most important question is this: Why are consumer privacy rights important? Our personal information has become a commodity in the modern world. Businesses and organizations regularly buy, sell and transfer our personal data, such as our names, genders, addresses, religions, what we do on the Internet, our browsing history, our viewing and purchasing habits, and more. This happens so often that it is almost impossible to know who has access to our sensitive data and what they do with those personal details. Unfortunately, this bill fails to adequately protect the privacy of Canadians and puts commercial interests ahead of privacy rights.
The first part of this bill is the consumer privacy protection act, and I will note, as many others have during this debate, that it is really three bills in one. It is the largest part of this bill and brings in new regulations on the collection, use and sale of the private data of Canadians. I will cover three issues that I have found in this act in the first part of this bill.
The first issue relates to how organizations may collect or use our information without our consent. Subclause 18(3) states:
(3) An organization may collect or use an individual’s personal information without their knowledge or consent if the collection or use is made for the purpose of an activity in which the organization has a legitimate interest that outweighs any potential adverse effect on the individual resulting from that collection or use
Without defining what a “legitimate interest” is, this subclause risks giving organizations free rein to define “legitimate interest” in whatever way suits their own commercial interests.
The second issue I will cover relates to how the bill would protect the privacy rights of children. Subclause 2(2) states:
(2) For the purposes of this Act, the personal information of minors is considered to be sensitive information.
However, nowhere in this bill are the terms “minor” or “sensitive information” defined. This will lead to confusion about how the personal information of children should be handled, and will ultimately lead, in my opinion, to weak protection of that information. There is also no other provision in this legislation that regulates the collection and use of children's personal data.
Every parent in the House of Commons is very concerned about their child going on Minecraft and about their interactions with other people and other gaming sites. This bill does not do enough to protect children in the context of online gaming.
The last issue I will raise in this act relates to when organizations can rely on implied consent to collect and use personal data. Subclause 15(5) states:
(5) Consent must be expressly obtained unless, subject to subsection (6), it is appropriate to rely on an individual’s implied consent, taking into account the reasonable expectations of the individual and the sensitivity of the personal information that is to be collected, used or disclosed.
This subclause highlights that the bill lacks a clear definition of “sensitive information”. This means that organizations will have free rein to determine when they can rely on implied consent, and they will be free to decide what information is or is not deemed sensitive according to their interpretations and not the legislation's interpretation.
The second part of the bill relates to the creation of the new personal information and data protection tribunal act. The bill would create a new semi-judicial body with the power to levy financial penalties against those who violate the CPPA, the first part of the act. I question whether this tribunal would be able to enforce the penalties outlined in clause 128, which are tied to global revenue and a proportion of profit in the previous fiscal year.
How does the government plan on ensuring accurate figures? Does the government really believe that it will go after Google in a global context, hold Google accountable and collect up to 4% or 5% of Google's global revenue? It is farcical.
We need very clear and very big amendments to this section. We need to question whether we even need a tribunal, because if it is in charge of enforcing clause 128 of the bill, I already know it is going to fail.
Under the third section of the bill, the artificial intelligence and data act, new provisions would be created that apply to the private sector. However, this bill does nothing to address the relationship between government and artificial intelligence.
Right now in Parliament, we are debating Bill C-11, which talks about the government's use of algorithms in the context of the CRTC. This bill has rightly infuriated Canadians across the country who are concerned about how the government would determine what people say and do on the Internet and where they would be directed. Why is the government not trying to apply the same standards upon itself as it is trying to apply on private corporations?
I want to address some other key oversights in the bill.
First, in the U.K., EU and even Quebec, certain personal details, such as race, sexuality and religion, are given special protection in comparison with other personal information. Why does the government believe the most identifiable aspects of our personal information are not worthy of being defined as sensitive information in the context of privacy law?
Second, the bill does nothing to regulate the sale of personal data. I am reiterating this point. In a world where the sale of personal data has become an integral part of our economy, why is the government not concerned with setting clear rules on how data and what kinds of data can be bought and sold, especially in the context of children?
Third, the bill fails to regulate the use of facial recognition technology. The RCMP used Clearview Al's facial recognition database, which was illegally created. Why does the government not think it is appropriate to ensure this never happens again?
Fourth, the consumer privacy protection act and the personal information and data protection tribunal act proposed in this bill are nearly identical to the acts proposed under last Parliament's Bill C-11. The consequence is that Canada's consumer privacy laws will be out of date by the time they come into force.
This bill was an opportunity to put forward strong regulations on the collection and use of personal data, but it failed to meet some basic criteria and thresholds. While the increased penalties for violating the act are welcome, they are watered down by the implementation of a tribunal that would take months or potentially even years to make a decision and levy fines. It is even questionable whether such a tribunal could actually do what it is purported to be responsible for.
Do we really need privacy legislation that fails to protect the privacy of Canadians? Do we really want privacy legislation that fails to put consumer interests ahead of corporate interests? Do we really want privacy legislation that fails to protect the personal information of children? Do we really want Al regulations that do not apply to government? Frankly, the government needs to withdraw Bill C-27, break it up into different parts and come back to Parliament after it has looked at the drawing board again and done something a little more comprehensive.
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Madam Speaker, it is interesting that the deeper we get into the debate, the deeper the Conservative Party gets into disliking the legislation. I look at the legislation as something that will have a very strong positive impact in protecting the privacy of Canadians. Penalties are going to be put in, substantial financial penalties, even though the member opposite mocks them. There are other issues as well, such as the privacy management programs that businesses would have to put forward.
There is so much good stuff in this legislation, yet the Conservatives are prepared to say they do not care; they have other things on their agenda, and they are going to prevent this legislation from passing. Does the member not feel that Canadians deserve this kind of legislation, at least as a starting point, and that the Conservatives could do whatever they like afterwards?
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Madam Speaker, why bring forward legislation that does not define “sensitive information” in the context of children? We all know this is a problem. I acknowledge this is a problem. Why not do the work right now? There are a lot of very talented public servants who could define “sensitive information” in the context of children.
In relation to clause 128 and the fines imposed on people who would break the Privacy Act, the Government of Canada wants the ability to go after global tech companies and ask them to pay the government a portion of their earnings from a previous fiscal year, but the government is not capable of doing that right now. It is absolute fluff.
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Madam Speaker, I was curious to hear my colleague's opinion on apps that use games or quizzes to not only get information out of the people who respond, but also access their cellphone contacts.
Does my colleague think the bill should legislate that?
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Madam Speaker, that is a very important point. I have a seven-year-old son, and he is starting to play games on my iPhone and whatnot.
We cannot say that Bill C‑27 will protect children because this bill does not include a definition of sensitive information, which we need.
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Madam Speaker, what is unfortunate with the Conservatives' position on this is that they have raised some significant problems with the bill, but they want to stop it from going to committee, which is rather ironic. The suggestion is to hand the entire project back to the Liberals, their central party organization and their political infrastructure to start over as opposed to moving it to public debate, witness testimony and expert dialogue, which is necessary.
I am not willing to turn this entire project back to the Liberal machine, and that is what is unfortunate here. I can attest that his members in the committee are very good. We have heard speeches from the Conservatives saying that they want amendments. Why will they not bring the bill to committee and get those amendments? That is a better choice than turning it back to the Liberals, whenever that is going to take place.
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Madam Speaker, I will note that I am on the industry committee with the member for Windsor West, and he provides a lot of intelligent insight and corporate knowledge to key pieces of legislation like this one. Unfortunately, we are in a situation today where the New Democratic Party has decided to support the Government of Canada on all key pieces of legislation. Therefore, even if the member for Windsor West has a problem with a key aspect of the bill, I am not confident the supply agreement between those two parties will result in good legislation.
That is why the Conservatives are calling on the Government of Canada to go back to the drawing board. At the end of the day, the New Democrats do not have enough money to fund a federal election. That is why they are supporting the Liberals, despite the poor legislation.
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Madam Speaker, I am so pleased to rise today to speak to the digital charter implementation act, 2022. With Bill C-27, our government is showing leadership in a new digital world. Privacy is important to the residents of my riding of Hamilton Mountain. It is important to all Canadians. This legislation would not only benefit consumers, it would allow companies to innovate, compete and thrive.
The world I grew up in is significantly different from the world in which my son is growing up. This bill gives me confidence that we will be able to take advantage of the latest technologies, while at the same time be assured that our personal information is safe and secure.
I want to specifically talk about the consumer privacy protection act and how it sets out a balanced approach to compliance and enforcement.
Canadians clearly want their personal information to be handled responsibly, and they want meaningful consequences for organizations that break rules to gain some advantage. Canadians want fair punishment for truly bad actors.
According to a survey published by the Office of the Privacy Commissioner, 71% of Canadians have refused to provide their personal information to an organization because of privacy concerns. In an earlier survey, this same percentage of Canadians said that their willingness to share their personal information would increase if they knew the organization would face financial consequences should their information be mishandled. Such consequences are clearly an important tool for enhancing privacy protection for Canadians and also for helping organizations comply with the law right from the start.
The consumer privacy protection act, or CPPA, will assist companies to get privacy right and the escalating enforcement approach will correct problems as they arise.
The new privacy law incentivizes organizations to step up and improve their privacy practices at the outset. The CPPA will also provide the Privacy Commissioner with a key role in helping them do so.
Under the CPPA, businesses will be able to ask the Privacy Commissioner to review the policies and practices that make up their privacy management program, which will assist them in complying with the law. The commissioner can also ask to review such programs. This is a very important step in the early detection and serves to correct problems at the outset.
Privacy management programs cover a wide range of privacy considerations: how companies manage service providers; how they respond to breaches; when to undertake privacy risk assessment; employee training; complaint handling; and so on. Under the CPPA, the Privacy Commissioner will be able to examine these policies and practices outside of an investigation. The goal is for the commissioner to give advice and make recommendations.
The CPPA will prevent the commissioner from using what he or she has learned in these reviews in any enforcement action unless the organization willfully disregards recommendations. We think this would be very rare, but if it happens, action can be taken.
The approach provides an appropriate space in which the commissioner can provide advice and companies can take proper action. At the same time, the commissioner will be able to gain insights on how the law is implemented in real-world situations, thereby being able to better advise organizations on the challenges they may face in the privacy space.
Essentially this approach builds on the Office of the Privacy Commissioner's current business advisory function, which has proven successful in encouraging compliance through engagement rather than enforcement. By allowing for the review of privacy management programs, the CPPA provides businesses with a safe place to seek and obtain advice and implement compliance solutions at the onset. We believe this will help prevent privacy issues before they have an impact on individuals.
We know Canadian companies will be very interested in this part of the new law, particularly smaller companies and start-ups, and I can probably think of a few in Hamilton Mountain.
The CPPA recognizes that a one-size-fits-all approach does not work for privacy. Some organizations deal with minimal amounts of personal information; for others, it is central to their business model. That is why the CPPA allows organizations to develop their privacy management programs according to the volume and sensitivity of the personal information that they handle, and why the commissioner must also take this and a company's revenues into consideration during the exercise of the role under the law.
Another important protection under the new act is the ability of the Privacy Commissioner to review the risk assessments and mitigation measures that organizations must do if they rely on a brand new exception to consent for activities in which they have legitimate interest.
Under the CPPA, the Privacy Commissioner will continue to undertake research and publish guidance. It is a long-standing role and important in helping organizations meet their compliance obligations. It is a role that we wholeheartedly support.
The bill would ensure that organizations build privacy considerations into their products and services from the beginning. Working with organizations, giving guidance, this is a fundamental role of the Privacy Commissioner. We want to be proactive here. We want to prevent problems before they have a harmful impact on individuals.
However, there will be organizations that do not have the right practices. There will be others that have the right practices but still make mistakes. This law provides individuals with the right to complain about an organization's privacy policies when they appear to be offside with the law. The right to complain is considered to be a fundamental principle in all privacy statutes.
Under the CPPA, like PIPEDA, the Privacy Commissioner also retains the ability to initiate a complaint investigation when there are reasonable grounds to do so. This is an important role because filing a formal complaint is not always obvious. Maybe some people will not know there is a problem; maybe they do not have time to make a complaint. This is where the Privacy Commissioner should be able to take action when intelligence gathering from media reports and their own research indicate that there could be potential trouble.
CPPA encourages the early resolution of problems and provides for dispute resolution. Over the years, through its active early resolution approach, the Office of the Privacy Commissioner has successfully been able to resolve many complaints with limited formality.
The CPPA maintains such tools for the commissioner. For example, compliance agreements, introduced relatively recently under PIPEDA, remain in the CPPA. Pursuing these agreements allows companies to work out an acceptable resolution with the commissioner, without the commissioner resorting to more formal measures, like orders. However, resolution will not always be possible or desirable. Sometimes the commissioner will need or want to consider stronger measures.
Under CPPA, the commissioner will have the power to issue orders to compel an organization to take necessary actions to bring the organization into compliance. This is a new power and a key improvement over PIPEDA.
Prior to issuing such orders and to ensure fairness, the Privacy Commissioner's office will need to go through a new process, called an inquiry. Once the inquiry is completed, the commissioner will issue findings and a decision, and will make orders as necessary to an organization to change its privacy practices.
As part of this process, the Privacy Commissioner may also recommend administrative monetary penalties to a new tribunal for certain contraventions of the law. The possibility of significant fines for non-compliant organizations, fines of up to 5% of global revenue or $25 million, whichever is greater, for the most serious offences, is another key improvement over PIPEDA.
A key part of the new enforcement regime, the personal information and data protection tribunal is being established to hear appeals of the commissioner's decisions. If required, it will also decide whether to issue a monetary penalty and, if so, the amount.
Industry stakeholders say that we need impartiality in enforcement decisions, given the different roles of the Privacy Commissioner. This was particularly the case for any proposals involving monetary penalties, which have the potential to significantly affect an organization.
The new privacy law will support additional due diligence in decisions to impose monetary penalties by introducing an inquiry phase before issuing orders, and by separating the imposition of penalties from the commissioner's other responsibilities.
We know that some organizations will challenge the commissioner's orders and recommendations, and we do not want to burden the courts. This is another reason for introducing a new tribunal. It is intended to be more accessible than the courts. It will ease access to justice for the individual and the organization.
After the previous version of this bill was tabled, stakeholders told us it needed more privacy expertise. We listened and this version of the CPPA has the necessary privacy expertise to ensure credibility.
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Madam Speaker, I appreciate that the member has been participating in the debate today.
One of the questions that I have is, if this is really about protecting the personal privacy of individuals, why this bill has so many exemptions for businesses. It allows, in subsection 18(3), the legitimate interests of businesses to override the interests of an individual. In subsection 15(5), it allows businesses to use implied consent, not real consent, to override the interests of personal privacy.
Why is it that personal privacy is not part of the purpose of the bill as a fundamental right?
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Madam Speaker, this legislation needs to be flexible. As I mentioned in my speech, it applies not only to big corporations but to smaller companies and companies that use a lot of personal data as well as companies that use very little personal data. It has to be flexible. It has to be able to work in different situations. It has to be able to work in the future because, as we have seen, technology advances very quickly. We need legislation to be able to adapt regardless of the changes in technology that are happening before we can change the laws to accommodate.
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Madam Speaker, I think my question will resonate with my colleague. Personal information protection and security are very important to me. I myself was recently a victim of credit card fraud. I bought a nice couch that I did not even shop for myself. Handy, right?
Anyway, as much as I recognize the importance of protecting personal information, I also recognize the importance of protecting victims of cyberviolence. We will be studying an online hate bill soon. My colleague and I may have to work on a way to identify offenders, individuals who attack people online and hide behind anonymity.
Does my colleague think the legislative measures in Bill C‑27 could make it harder for us to adequately legislate online hate?
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Madam Speaker, I do not think this bill is going to create any issues for the other bill that we are going to look at in committee. I think there are a number of measures that need to be put in place to deal with the problems of the digital world that we face today.
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Madam Speaker, I just have a question for the member. She brought up Google before, but I will quote Jim Balsillie again.
I want your response to his statement that “Canada’s federal government has repeatedly failed to take privacy seriously and construct a legal and regulatory framework that protects the rights of Canadians in the digital age.” How do you respond to that?
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- Mar/7/23 1:41:50 p.m.
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I am not going to let him know how I am going to respond to it, but I will ask the member to respond to it.
The hon. member for Hamilton Mountain.
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- Mar/7/23 1:42:02 p.m.
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Madam Speaker, I have forgotten the question.
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- Mar/7/23 1:42:19 p.m.
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Madam Speaker, the member across the way talked about Google. We have always known that there is a close relationship between Google, the Prime Minister and the Liberals.
However, a question comes up from Jim Balsillie's statement that “Canada’s federal government has repeatedly failed to take privacy seriously and construct a legal and regulatory framework that protects the rights of Canadians in the digital age.”
Would the member please respond to that?
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Madam Speaker, I think this government takes privacy very seriously. That is why we have been working on this legislation since the last government and why we have improved this legislation, bringing it before the government a second time to include things like artificial intelligence and improve security for the privacy of young people on the Internet.
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