You see Canada’s private-sector privacy legislation (PIPEDA) requires organizations to retain personal information only “as long as necessary”, regardless of the format in which such information is held. So emails and paper records alike should only be retained as long as necessary.

I know that many organizations across Canada are struggling to develop business-friendly retention schedules that comply with the law. In some cases, these businesses are outsourcing their efforts. Do you work with such a company? Does your company offer these services? If so, I know that readers of this blog would welcome any positive recommendations. Feel free to post a “Comment” below with your thoughts.

CNET is reporting today that “a broad coalition of companies including Google, Microsoft, and AT&T, joined by liberal and conservative advocacy groups, will announce a major push [today] to update federal privacy laws to protect mobile and cloud computing users”.

Of course, in Canada cloud computers have the benefit of PIPEDA and – where they exist – substantially similar provincial privacy laws. To learn more about cloud computing, and related privacy law implications, you may want to check out this previous post.

Have you heard the term “cloud computing“, but aren’t really clear what it means?

Cloud computing is an umbrella term that refers to the use of Internet-hosted computer services. Think of your server — instead of having one in-house server located on company premises, an organization might opt to buy space on a third-party provider’s server. Other options include software hosting and data storage. By purchasing computing services from a variety of Internet-based providers, your computer needs are housed within a larger “cloud” of computer services.

Some organizations are opting for ”Software as a service” (SaaS), and allowing their data to reside on other company’s servers, or “the cloud“. Users only have to buy the space they need, which allows organizations to save money on their technology costs. Other benefits include access to people with technological know-how, flexibility and reduced maintenance costs.

Cloud computing is not new, but is now embedded into the fabric of modern business operations.  In fact, the Los Angeles Times has reported that the city of Los Angeles is considering using Google applications for all of its software needs. 

Privacy issues related to cloud computing, however, are profound. For example, many of the security questions that relate to traditional third-party data hosting were raised when a hacker broke into a Twitter employee’s work e-mail account and stole confidential company documents. The World Privacy Forum, meanwhile, has released a 28-page report on some of the privacy issues that relate to cloud computing. The report concludes that sharing information may expose some business users to liability, and emphasizes the importance of checking a cloud provider’s terms of service, privacy policy, and location.

Canadian businesses that engage in cloud computing should be reminded that they must do so in compliance with applicable privacy laws. For example, the Personal Information and Protection of Electronic Documents Act obliges organizations that transfer personal information to third parties to ensure appropriate security safeguards are in place.

They should also be mindful of the raging debate about the perils of cloud computing that has been underway now for some time. While cloud computing has the potential to provide benefits, organizations should ask themselves whether it is worth the risks it poses. You might save money in the short run, but is it worth the potential of a massive privacy breach? 

As the OPC points out, PIPEDA does not prohibit organizations in Canada from transferring personal information to organizations in other jurisdictions for processing, but Canadian organizations are still accountable and the OPC can investigate complaints and audit privacy practices of Canadian organizations.

PIPEDA provides that

an organization is responsible for personal information in its possession or custody, including information that has been transferred to a third party for processing. The organization shall use contractual or other means to provide a comparable level of protection while the information is being processed by a third party.

The primary means by which an organization can protect personal information that it transfers to a third party for processing is through a contract. Organizations must also be transparent about their privacy practices, including advising customers that their personal information may be sent to another jurisdiction for processing and that while the information is in another jurisdiction, it may be accessed by the courts, law enforcement and national security authorities.

Check out the OPC’s Guidelines, and if your business hasn’t yet signed privacy contracts with all third parties to whom you transfer or disclose personal information, now may be the time.

Canada, U.S. laws on privacy complex

My September 3, 2008 column in the Winnipeg Free Press reports on the findings of the Privacy Commissioner of Canada regarding canada.com’s  outsourcing to a U.S. based service provider. The finding highlights the complexities of Canadian and U.S. laws as they relate to the personal information of customers and reminds Canadian businesses of the need to have legal agreements with third party service providers, especially those located in the U.S.

Time to amend the Personal Information Act

My January 3, 2007 column in the Winnipeg Free Press discusses the mandatory review of PIPEDA and my recommendations on behalf of the Canadian Bar Association.

Outsourcing comes with risks; U.S. service providers bring privacy concerns

My April 5, 2006 column in the Winnipeg Free Press reports on the implication of Canadian businesses using American companies to store Canadian personal information.