Bill C-29 Proposes to Enhance Current Private-Sector Privacy Legislation

Bill C-29, a proposed amendment to the Personal Information Protection and Electronic Documents Act ("PIPEDA" or the "Act"), seeks to enhance the private-sector privacy legislation in Canada.

Bill C-29 which was first read on May 25, 2010, is expected to provide clarification for insurers, corporations and federal employers, who under the existing PIPEDA provisions have voiced uncertainty as to what investigative steps they can take without violating Canadian privacy laws. The current PIPEDA provisions allow for the collection, use and disclosure of personal information, without consent, only when there is a breach of contract or law. The Privacy Commissioner has been of the view that under the current PIPEDA provisions, the mere suspicion of a crime or a breach of contract is not grounds for an investigation in the private-sector.