Please note that the following section is subject to review by legal counsel with extensive knowledge on privacy issues and is subject to future amendments.
The Federal Personal Information Protection and Electronic Documents Act (PIPEDA) applies to every organization in Canada that collects uses and discloses personal information in the course of commercial activities. The issue of whether the privacy legislation applies to charities and non-profit organizations will depend on the nature of activities that those organizations engaged in. A qualified professional can help you determine whether your organization must comply with Canadian privacy legislation and advise you on the steps to take to ensure compliance.
Generally, although some charitable and non-profit organizations not engaged in commercial activities may be exempt from privacy legislation, it is still important for those organizations to adhere to the underlying privacy principles. Not only is this the recommendation of the Federal Privacy Commissioner, it is also the expectation of donors and members that the charitable and non-profit organizations they support recognize their right to privacy as an essential issue.
If your organization is deemed to be subject to PIPEDA, the Act will impose onerous and time-consuming administrative costs on the organization. The Act requires organizations to comply with the ten principles incorporated in Schedule 1 of the Act. In summary, Schedule 1 sets out the following ten principles:
Accountability
An organization is responsible for personal information under its control and shall designate an individual or individuals who are accountable for the organization’s compliance with the following principles.
Identifying Purposes
The purposes for which personal information is collected shall be identified by the organization at or before the time the information is collected.
Consent
The knowledge and consent of the individual are required for the collection, use, or disclosure of personal information, except where inappropriate.
Limiting Collection
The collection of personal information shall be limited to that which is necessary for the purposes identified by the organization. Information shall be collected by fair and lawful means.
Limiting Use, Disclosure, and Retention
Personal information shall not be used or disclosed for purposes other than those for which it was collected, except with the consent of the individual or as required by law. Personal information shall be retained only as long as necessary for the fulfilment of those purposes.
Accuracy
Personal information shall be as accurate, complete, and up-to-date as is necessary for the purposes for which it is to be used.
Safeguards
Personal information shall be protected by security safeguards appropriate to the sensitivity of the information.
Openness
An organization shall make readily available to individuals specific information about its policies and practices relating to the management of personal information.
Individual Access
Upon request, an individual shall be informed of the existence, use, and disclosure of his or her personal information and shall be given access to that information. An individual shall be able to challenge the accuracy and completeness of the information and have it amended as appropriate.
Challenging Compliance
An individual shall be able to address a challenge concerning compliance (or fulfilment) with the above principles to the designated individual or individuals accountable for the organization’s compliance.
PIPEDA also provides that an organization may be exempted from PIPEDA if the province that the organization is located in has enacted privacy legislation that is substantially similar. Since PIPEDA has come into force, the Federal Privacy Commissioner has declared provincial privacy legislation in Alberta, B.C. and Quebec to be substantially similar to PIPEDA.