Canada’s New Consumer Privacy Protection Act (CPPA)

Definition & Meaning:

Canada’s New Consumer Privacy Protection Act (CPPA) is a legislative proposal intended to modernize the Personal Information Protection and Electronic Documents Act (PIPEDA), enhancing privacy rights and consumer protection in the digital age for Canadians.

This act introduces stronger measures for the protection of personal information and gives Canadians more control over how their personal data is handled by organizations.

For example, under the CPPA, you would have the right to request the deletion of your personal information from a company’s records or to request that your data not be shared with third parties.

The CPPA emphasizes transparency and consent, requiring businesses to obtain clear consent for the collection, use, and disclosure of personal information.

This means that companies must provide straightforward information about their data practices in a way that is easy to understand. If a business plans to use personal information for purposes not initially consented to, it must obtain new consent from individuals.

One of the key features of the CPPA is the introduction of significant fines for non-compliance, making it one of the strictest privacy laws globally. Organizations that violate the CPPA could face penalties of up to 5% of their global revenue or CAD 25 million, whichever is greater.

This creates a strong incentive for businesses to prioritize data privacy and protect consumer information.

The act also establishes a new tribunal to enforce privacy laws and adjudicate disputes, streamlining the process for addressing privacy violations and ensuring that individuals have access to recourse if their rights are infringed.

Additionally, the CPPA grants Canadians the right to data portability, allowing individuals to move their personal information from one organization to another, enhancing consumer choice and control over their data.