Disclosure Of Personal Information In Connection With Business Transactions

Subject to certain limited exceptions, federal and provincial privacy legislation in Canada requires the consent of the relevant individual prior to disclosing the individual's personal information. This may leave organizations wondering what their options are for disclosing personal information in the context of a commercial transaction to ensure that the organization doesn't fall offside in terms of the legislative requirements.

Some organizations may attempt to rely on provisions in the organization's privacy policy or other pre-existing agreements that allow for disclosure in connection with a commercial transaction. Alternatively, organizations may opt to obtain express consent from each individual at the time the transaction arises or when due diligence requests are made. However, this can create a significant hurdle for some organizations. In particular, for organizations with a large number of customers, contractors and employees, obtaining the required