The NDP’s decade of dithering on e-commerce

July 9, 2010

Have you ever wondered if an electronic document like an e-mail or a scanned image can be used instead of a paper document to meet a legal requirement? How about using an electronic signature as opposed to a written signature?

Unfortunately, the provincial government’s dithering over the past decade will not help you answer these important questions.

Manitoba’s e-commerce legislation, called The Electronic Commerce and Information Act, was passed in the Manitoba Legislature in 2000. It was then billed as a cutting edge law that would help Manitobans to prosper in the online world.

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Leave a Comment » | Government, Internet, Online Shopping, Sale Transactions, Technology | Tagged: , , , | Permalink
Posted by Brian Bowman

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.

Leave a Comment » | Due Diligence, Internet, PIPEDA, Privacy, Privacy Breach, Sale Transactions | Tagged: , , , , , , | Permalink
Posted by Brian Bowman

Escrow as a new tool for privacy

March 23, 2009

keys-2Bell Canada recently announced that it would acquire The Source, a national electronics dealer.  Bell has indicated that it will be acquiring substantially all of the assets of The Source.

I don’t know what those assets will be, but I think it is an interesting example of the fact that even in recessions we still see acquisitions of companies.  When an organization’s assets are bought, one of the most valuable assets that are purchased is often its customer list.   

PIPEDA and other applicable privacy laws, of course, govern transactions involving personal information.   In the course of such transactions some companies are now implementing concepts once used only to secure physical assets.  For example, many organizations are choosing to employ “escrow” arrangements to ensure the security of personal information.

Most businesses now understand that the implications of violating applicable privacy laws can be very serious to the reputation and bottom line of both the vendor and purchaser.  As part of a sale of a customer list, and depending on the specific circumstances, both parties may agree that the customer list be placed in escrow until the transaction is completed.  This ensures that what is likely the most valuable asset in the transaction – the customer list – is protected from unintended disclosures prior to the actual transfer of the business.

1 Comment | Access to Information, Due Diligence, Privacy, Sale Transactions, Security | Tagged: , , , , , , , , | Permalink
Posted by Brian Bowman

Privacy matters to most customers

February 12, 2009

privacyPrivacy matters to most customers: Staff should be able to handle concerns

My October 1, 2008 column in the Winnipeg Free Press reports on a survey released by the Privacy Commissioner of Canada and the vital need for businesses to train their staff to identify and deal with privacy issues.  Privacy training, or lack thereof, can affect the bottom line.

Leave a Comment » | Marketing, Privacy, Safeguarding, Sale Transactions, Security | Tagged: , , , , , , , , | Permalink
Posted by Brian Bowman

Get your company’s Privacy Policy in order

February 10, 2009

remindersGet your company’s privacy policy in order:  Potential purchasers will need to know

My March 5, 2008 column in the Winnipeg Free Press discusses some of the problems that can occur when trying to sell a business, if you haven’t put privacy policies in place.

Leave a Comment » | Access to Information, Due Diligence, Privacy, Sale Transactions | Tagged: , , , , , , , | Permalink
Posted by Brian Bowman

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