January 1, 2004 is a date that should be marked on the calendars of all Ontario businesses.

In response to horror stories of “identity theft” and consumers’ growing concern that they were losing control over their personal information, the Government of Canada introduced privacy protection legislation two and a half years ago called the Personal Information Protection and Electronic Documents Act (“PIPEDA”). Commencing January 1, 2004, PIPEDA will govern the collection, use and disclosure of all “personal information” by businesses in Ontario.

The Ontario Government is also working on its own privacy legislation, which is expected to become law in early 2004. Once such legislation is passed, Ontario businesses may be exempt from PIPEDA, but only if the Ontario legislation is “substantially similar” to PIPEDA. It is very important, therefore, that all Ontario organizations do the necessary work to ensure that they are operating in a manner that complies with Canada’s new privacy laws.

At its heart, PIPEDA is consumer protection law, aimed at ensuring that consumers will be able to exercise a measure of control over the collection, use and disclosure of their personal information by businesses. “Personal information” is defined as all information about an identifiable individual. What this means is that all information that can be connected to an individual – such as home address and phone number, health information, consumer preference data, and credit or other financial information – will be protected in the manner prescribed by PIPEDA.

In broadest terms, PIPEDA requires all businesses to seek the consumer’s consent to all intended uses and disclosures of the consumer’s personal information. The manner in which consent is obtained will vary in each circumstance and for each organization. It is therefore essential that each organization audit its practices and seek legal advice to ensure that it is conducting its affairs in compliance with the law.

With January 1, 2004 rapidly approaching, all businesses and organizations in Ontario should be making privacy and the protection of personal information a top priority. Mills & Mills LLP regularly advises on these matters.