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Privacy Law and Your Business - PIPEDA to Take Effect on January 1, 2004

November-28-2003

Lawyer Peter Ruby
Area Corporate and Commercial

Summary

Beginning on January 1, 2004, the federal Personal Information Protection and Electronic Documents Act, commonly referred to as PIPEDA, will apply to the collection, use and disclosure of personal information in the course of any private sector commercial activity in Ontario.  PIPEDA will also apply to commercial transactions undertaken by entities which are not, by their nature, profit-oriented (for example, the selling, bartering or leasing of donor membership lists by charities or not-for-profit organizations).

Although businesses will need to review their information management practices to ensure that they comply with PIPEDA, ensuring compliance with PIPEDA will likely not be burdensome (except for businesses that deal with personal information as a business asset).  Nonetheless, if a business does not follow the requirements of the legislation, it may suffer adverse publicity and/or incur legal liability.

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