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The Personal Information Protection and Electronic Documents Act (PIPEDA) is a federal privacy law that governs how the private sector collects, uses, and discloses consumers' personal information in Canada. PIPEDA has been fully in effect since January 1, 2004.
PIPEDA applies to organizations involved in commercial activities across Canada, including private sector companies, non-profits, and federal entities. It covers any organization that collects personal information about identifiable individuals.
Non-compliance with PIPEDA can result in fines, compliance orders from the Privacy Commissioner, public disclosure of violations, court action, and reputational damage. Adhering to PIPEDA not only helps avoid penalties but also ensures the protection of personal information and respect for individual rights.
Any organization handling personal information could face penalties for non-compliance. This includes companies that collect, use, or disclose personal data, particularly when it crosses provincial or national borders. Whether large or small, businesses are required to follow strict privacy regulations to protect personal information, or risk fines and reputational damage for failing to comply.
Organizations that fail to comply with PIPEDA’s requirements, such as implementing security safeguards or reporting data breaches, may face fines of up to CAD 100,000.
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Download checklistThe key requirements of PIPEDA (Personal Information Protection and Electronic Documents Act) in Canada include obtaining consent for data collection, ensuring purpose limitation and data accuracy, implementing appropriate security safeguards, providing individuals with access to their information, handling complaints and breaches, and maintaining accountability for personal information handling practices.
PIPEDA defines personal information as any data about an identifiable individual, such as name, age, gender, race, marital status, home address, ID numbers, or social insurance numbers. While PIPEDA doesn't explicitly define "sensitive personal information," it requires higher levels of protection for such data, depending on context. Examples provided by PIPEDA include medical history and income records.
To assure PIPEDA compliance for your business, start by implementing clear data protection policies and procedures. One of the easiest ways to simplify compliance is by using a Consent Management Platform (CMP) like Consentmo, which is designed specifically for Shopify stores. Our app helps you manage cookie consent, data requests, and user rights, verifying your store meets PIPEDA requirements without hassle.