Laptop Encryption: “I don’t know what we have to do to drive this message home” says Commissioner

September 10, 2009

Laptop 11A summer incident involving sensitive personal information on stolen laptops has brought the issue of data protection once again into the crosshairs of Frank Work, the Alberta Information and Privacy Commissioner

In a press release, the Commissioner expressed shock and disappointment with the fact that the stolen laptops, which contained the personal health information of more 300,000 individuals, were not encrypted. “This is shocking for me…I don’t know what we have to do to drive this message home” said the Commissioner. “The standard in Alberta for storing personal or health information on portable devices is encryption. I can’t accept anything less.” The Alberta incident is strikingly similar to an incident that occurred in Ontario back in 2007.  The Ontario incident also involved the theft of a non-encrypted laptop containing personal health information.  A review of the incident by Ann Cavoukian, Ontario’s Information and Privacy Commissioner, produced an order for information of this type to be encrypted. 

These incidents demonstrate how easily sensitive data can be compromised when stored on laptops.  Encryption is a relatively easy way to improve the security of such information.  But, where do you start? There are numerous encryption options available.  Choices range from free open source encryption software like TrueCrypt to full information security consultations from companies that offer comprehensive data protection services like Seccuris. Regardless of which course you choose, one fact remains the same, encrypting laptops significantly improves security and that’s just smart business.


Palm Pre phone secretly used GPS to report user’s location to company: Los Angeles Times

August 17, 2009

Palm preThe Los Angeles Times is reporting that the Palm Pre phone secretly uses GPS to report users’ locations to the company.

It is an interesting story because it illustrates the importance of having clear and understandable privacy policies that customers can understand. It is also an interesting story because it (once again) demonstrates the attention that the media place on privacy matters and the potentially explosive reaction that customers can have if they feel their privacy isn’t being respected.


Changes to PIPEDA may be coming soon

August 10, 2009

coming-soonHave you heard the saying “Just when you think you understand the situation, what you don’t understand is that the situation has changed”? If you think you understand The Personal Information Protection and Electronic Documents Act (“PIPEDA”), get ready… changes may be just around the corner. 

PIPEDA was introduced back in 2001. It requires the Canadian Government to review the law every five years.  To this end, the House of Commons Standing Committee on Access to Information, Privacy and Ethics (the “House of Commons Committee”) conducted its review and held public hearings from November 2006 to February 2007, where it heard from over 60 witnesses and considered over 30 submissions from a wide range of interested organizations and individuals. I had the pleasure of appearing before the House of Commons Committee to present the Canadian Bar Association’s National Privacy & Access Law Section’s submission, which you can read here. The House of Commons Committee issued its report to Parliament in May 2007 (which outlined 25 recommended changes to the law), to which the Canadian Government subsequently issued its response in October 2007. As part of the Canadian Government’s response, further public consultation on key issues was requested.  A link to the Office of the Privacy Commissioner’s reply to this request can be read here and the Canadian Bar Association’s response can be read here.

Changes to PIPEDA may include:

  • a mandatory breach notification regime that would require organizations to promptly notify affected individuals and to report major data breaches to the Privacy Commissioner of Canada; 
  • amendments to account for the unique circumstances regarding consent in employer/employee relationships; and
  • modifications to allow organizations to collect, use and disclose personal information as necessary for the conduct of business transactions, such as mergers and acquisitions.

The Industry Canada website targets 2009/10 for the implementation of changes resulting from this first PIPEDA review.  Yet, there is no definitive time frame, so stay tuned. Changes may be just around the corner.


Who are the identity thieves?

August 4, 2009

StealHeadline after headline these days talk about the growing incidences of identity theft.  But who really are these identity thieves?  Do they work alone or for KAOS (Get Smart fans will understand this joke)?  To answer this timely question, there is a recent post on the Office of the Privacy Commissioner of Canada’s blog entitled “Who are these identity thieves?“ 

The post cites an earlier survey by the Privacy Commissioner that shows that one Canadian out of six has been the victim of some form of identity theft and that more than 90% of Canadians report that they are concerned about identity theft. The Privacy Commissioner’s post also cites a report by Benoit Dupont, the Canada Research Chair in Security, Identity and Technology at l’Université de Montréal, and his colleague Guillaume Louis, which offers an illuminating profile of identity thieves. Here are some highlights:

  • 1.7 million Canadians were affected by identity theft in 2008.
  • More than 45% of cases of identity theft involve Internet use. However, the way “offenders” use the Internet is not as significant as we might think in terms of acquiring the victim’s personal information. On the contrary, it plays a greater role in actually committing fraud.
  • “Women account for nearly 40% of offenders. We believe that this strong presence can be attributed to the absence of violence inherent to this sort of crime and the possibility of committing the crime without help from an accomplice.”
  • “Identity thieves are relatively older than other offenders; the average age is 33 years.”
  • “Offenders acted alone in the majority of cases (64.6%), which seems to contradict the theory of extensive involvement by organized crime in this type of offence.”

The Privacy Commissioner’s post also cites a 2008 report released by the McMaster eBusiness Research Centre that showed that victims spent more than 20 million hours and $150 million resolving problems associated with these crimes.  If you’d like to read more about identity theft, please click on the “Identity theft” link under this blog’s Tags.


Smartphones in the workplace: what’s your business doing to manage the risk?

July 6, 2009

Cell phonesRecently, an interesting article in the Globe and Mail dealt with the issue of smartphone etiquette. Business professionals fidgeting with their BlackBerrys and iPhones in meetings, walking through airports with eyes glued to their small glowing screens and operating their devices in restrooms may seem unrealistic at first blush, but is it really? The reality is that smartphones have permeated the business world. They are everywhere, they are powerful and have the potential to be extremely damaging.

Breaches of confidential corporate data and personal information are nothing new to the business world, but smartphones have brought a new dimension to the problem. Smartphones are starting to make appearances in Canadian court cases in a supporting role, but it won’t be long before they are squarely in the spotlight. The latest iPhone model has up to 32GB of memory while BlackBerrys can store vast amounts of data on memory cards. The equivalent of entire filing cabinets can now be carried around conveniently in your shirt pocket. This reality has increased the risk for massive privacy breaches in the blink of an eye.

The big question is how involved should employers be in regulating and monitoring their employees use of smartphones? All encompassing monitoring of employee smartphone use is a touchy area, but the permeation of smartphones in today’s corporate world and the corresponding risks to businesses necessitates (at the very least) that relevant guidelines concerning their use in the workplace should be implemented by employers. All it takes to damage a business is for one employee to misplace their smartphone without having first activated their security settings.


IP Osgoode (at Osgoode Hall Law School) names On the Cutting Edge “Pick of the Week”

June 10, 2009

ChoicesI was delighted to learn that IP Osgoode has named this blog the “Pick of the Week”!

IP Osgoode at Osgood Hall Law School in Toronto is a new, independent and authoritative voice which explores legal governance issues at the intersection of intellectual property (IP) and technology. If you haven’t yet visited the IP Osgoode website, I would encourage you to do so as it contains some great content.

If you are also interested in finding additional resources, you may want to visit the Nymity website. Of particular interest, the Nymity website has a section dedicated to recent privacy breaches and recent privacy studies. Finally, you may also want to visit the Canadian Association of Professional Access and Privacy Administrators website.

Hope these links help!


Private-sector privacy law debated in Manitoba

May 21, 2009

The Manitoba Legislature is currently debating Bill 219The Personal Information Protection and Identity Theft Protection Act.

The Bill has been introduced as a private member’s Bill by Mavis Taillieu of the Opposition Progressive Conservative Party of Manitoba. It seeks to regulate the collection, use and disclosure of personal information by organizations in the private sector and is intended to be “substantially similar” to the federal Personal Information Protection and Electronic Documents Act (PIPEDA).  It would also establish a duty for organizations to notify individuals who may be affected when the personal information an organization has collected is lost, stolen or compromised.  Such a requirement would be groundbreaking in Canada (notwithstanding Ontario’s Personal Health Information Protection Act, which has a mandatory breach notification requirement).

Regrettably, the Government of Manitoba indicated in the Legislative Assembly debate last week that it has two primary concerns with the Bill.  The first concern is that the Bill lacks an independent oversight body such as a Privacy Commissioner of Manitoba. Legislative rules prevent private member’s Bills from containing financial penalties and so the Bill could not contain such provisions.  However, the government could add those provisions in amendments.  In fact, I assisted with the drafting of the Bill and would happily provide the government with the relevant provisions. The second concern raised by the government is that the Bill would introduce legislation in Manitoba that (according to the government) would regulate activities in the private sector already governed by PIPEDA. However, PIPEDA does not apply to the activities of private sector organizations in provinces such as Alberta and British Columbia, both of whom have Personal Information Protection Acts, because PIPEDA does not apply where “substantially similar” provincial legislation exists.

The Bill was first introduced in 2005 and since that time the need for such a law has significantly grown.  It’s modelled after Alberta’s Personal Information Protection Act, which provides a more business-friendly and clear legislative scheme than PIPEDA.  As I’ve previously argued, it would be good policy for the Government of Manitoba to support the Bill and I once again urge them to do so. 

If you want a more business-friendly privacy law in Manitoba, I’d strongly encourage you to contact the Government of Manitoba and Mavis Taillieu to indicate your support. 

Additional coverage on this topic by the Canadian HR Reporter here.


Bankruptcy and privacy considerations

April 22, 2009

bankruptcyThe current global economic climate has led to a growing number of bankruptcy and insolvency proceedings, particularly in the U.S. In dealing with these proceedings, many business leaders have not paid enough attention to the role of privacy law and its impact on the bottom line.

A prime example is the bankruptcy of U.S. online toy retailer, Toysmart.com. Toysmart.com had collected vast amounts of personal information from its online consumers in accordance with its privacy policy, which stated that the company would never share its database with third parties. Despite the promise, Toysmart.com then made attempts to sell the database. The U.S. Federal Trade Commission (“FTC”) then sued Toysmart.com seeking injunctive and declaratory relief to prevent the sale of the database by Toysmart.com. The complaint alleged that Toysmart.com had violated U.S. law by misrepresenting to consumers that personal information would never be shared with third parties, and then disclosing, selling and offering that information for sale. Toysmart.com later settled with the FTC. The settlement agreement forbid the sale of the database except under very limited circumstances.

Of course, Canadian companies are subject to Canadian privacy laws such as PIPEDA, which require the consent of individuals for the disclosure of personal information to third parties. In structuring privacy policies, Canadian companies should consider all outcomes including bankruptcy. As a result, privacy policies should be carefully drafted with consideration of the possibility that personal information may be shared with third parties in the event of bankruptcy.  Doing so will almost certainly not be enough to fully comply with Canadian legal requirements, but it’s a prudent step in the right direction – especially in these uncertain economic times.


Can U.S. residents make privacy complaints to Canada’s Privacy Commissioner?

April 13, 2009

usDoes PIPEDA apply to non-Canadians? It’s a common question.

PIPEDA applies to organizations that collect, use, or disclose “personal information” in the course of a commercial activity. The definition of “personal information” does not specify the residency of the individual to whom the personal information must relate. As a result, organizations are well-advised to manage their personal information holdings in accordance with all of the obligations set forth in PIPEDA regardless of the residency of the individuals to whom information relates. If they don’t, non-Canadians (including U.S. residents) may initiate privacy complaints to the Office of the Privacy Commissioner of Canada.


Identity theft growing rapidly

February 6, 2009

business-concepts1Identity theft growing rapidly

My February 7, 2007 column in the Winnipeg Free Press revisits identity theft with the publication of major data breaches by Winners and CIBC.


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