Canadian Competition Bureau Takes Enforcement Action Against Misleading Privacy Claims

The Competition Bureau of Canada has taken its first enforcement action against an organization for allegedly violating Canadian truth in advertising laws by making false and misleading representations about its privacy practices. The enforcement action demonstrates the Bureau's willingness to use its enforcement powers, including imposing significant administrative monetary penalties, to protect Canadian consumers against false or misleading privacy policies.

Privacy laws

Under Canadian privacy laws, private sector organizations are generally required to obtain individuals' meaningful consent to the collection, use and disclosure of their personal information. Organizations commonly rely on their published privacy policy to obtain meaningful consent from their customers and other individuals with whom they interact. To be effective, a privacy policy must be accessible and provide a clear, comprehensive and understandable description of the organization's