Public consultation on the Privacy Act – Submission – Graham Greenleaf

Graham Greenleaf, Professor of Law & Information Systems, UNSW Sydney

The University of New South Wales | UNSW Sydney NSW 2052 Australia
T: +61(2) 9385 2485 | F: +61 (2) 9385 1245 | ABN 57 195 873 179 | CRICOS Provider Code 00098G
Sydney | Canberra | Australia

This invited submissionFootnote * responds to the Discussion PaperFootnote 1 issued by the Canadian Department of Justice concerning reform of the Privacy Act, which regulates data privacy issues in Canada’s federal public sector. No draft Bill is provided with the Discussion Paper.

Contemporaneous with the reform of the public sector law, the Minister for Innovation, Science and Industry introduced a Bill for the Consumer Privacy Protection ActFootnote 2 (known as Bill C-11), which (if enacted) will replace Canada’s private sector legislation, the Personal Information Protection and Electronic Documents Act (PIPEDA) which also dates, largely unchanged, from the late 1990s. Bill C-11 is described by Canadian commentators as ‘Canada’s GDPR moment …[the] biggest privacy overhaul in decades’Footnote 3 However, questions remain concerning whether its provisions are strong enough to ensure that Canada’s positive ‘EU adequacy’ status is renewed, because of its lack of specific provisions concerning data exports, among other reasons.Footnote 4

Canada therefore has the opportunity to update both of its rather antiquated public and private sector laws, and to do so in a way which maximises consistency. It is unfortunate that the Discussion Paper refers only to aspects of PIPEDA, rather than exploring the possibilities for innovation and consistency found in the terms of Bill C-11. The opportunity to guarantee consistency by enacting one comprehensive national law has not been taken, but Canadians can still obtain the benefits of modern innovative and consistent data privacy laws if the two Ministries and the Parliament aim to ensure that this happens.

Executive summary

The principal recommendations made in this submission are as follows:

‘Third generation’ principles for reform are needed

Canada’s Privacy Act dates largely from the early 1990s, when fewer than twenty countries globally had data privacy laws, and it reflects the ‘first generation’ of international data privacy principles, particularly the OECD privacy Guidelines of 1980, and some parts of Convention 108 of 1981 (but omitting other principles). These principles were superseded by the much stronger protections found in the ‘second generation’ of data privacy principles embodied in the European Union’s data protection Directive of 1995 (and corresponding 2001 amendments to Convention 108). By 2011 most data privacy laws outside Europe had already adopted principles based on the majority of the stronger principles found in the EU Directive,Footnote 5 The OECD Guidelines remained largely unchanged in substance in their 2013 revision, and have not been a significant fact of global data privacy developments since the end of the1980s.

However, PIPEDA’s ten privacy principles were comprised by the Canadian Standards Association (CSA) Model Code of 1996,Footnote 6 which in turn was based on the OECD Guidelines of 1980. These ten 1980-vintage headings now form the structure around which this Discussion Paper for revision of the Privacy Act is based, even though they are not the basis of PIPEDA’s successor, Bill C-11. Nostalgia is a poor basis for public policy.

Modern reality is that there are now 145 countries with data privacy laws, and in recent years most new laws, and reforms of existing laws, have been influenced very strongly by the EU’s General Data Protection Regulation (GDPR) of 2016,Footnote 7 most of the significant principles of which are also found in the ‘modernised’ Convention 108 of 2018 (‘Convention 108+’), which together constitute a ‘third generation’ of international data privacy principles.

Canada’s 1985 public sector law is therefore something of a relic, and its revision gives Canada the opportunity to raise its standards to those of a modern ‘third generation’ data privacy law. As well as providing significantly stronger protections for individual Canadians, such a modernisation would benefit Canada as a country, and Canadian businesses, by strengthening Canada’s case for renewal of its ‘adequacy status’ by strengthening the protections of personal data when it comes into the hands of Canadian government agencies.

Such a public sector modernisation would also mean that Canada would have a much stronger case for being able to accede to Convention 108+, which would have many significant long-term advantages for the free-flow of personal data between Canada and other Parties to this increasingly global data protection treaty.Footnote 8

Such an approach would be completely consistent with the ‘three supporting pillars’ proposed for the reforms – respect for individuals ‘fit for the digital age’; accountability ‘that is meaningful and transparent’, or in others words ‘demonstrable’; and adaptability through being principles-based rather than unnecessarily prescriptive. But it calls for a ‘fourth pillar’, consistency with current international standards, as the Discussion Paper suggests (p. 4). However, this is not assisted by treating all such standards as though they are of equal value. The OECD Guidelines and the APEC Privacy Framework reflect the past history of data privacy, whereas the GDPR and Convention 108+ reflect the future.

‘Consistency’ between Canada’s public sector and privacy sector principles and legislation is also necessary, as the Discussion Paper acknowledges (p. 4), but this now means that references to PIPEDA in the Discussion Paper need to be superseded by consideration of Bill C-11, in whatever form that Bill emerges from the legislative process. Basing such consistency around a set of principles largely derived from the 1980s-vintage OECD Guidelines does not seem a sensible starting point.

Canada is one of the few jurisdictions in the world to treat the OECD Guidelines as having such a high degree of significance in the development of data privacy laws, but this perhaps reflects the key roles that Canadians have had, and continue to have, in their development (or lack of such).Footnote 9

Despite the above references to Bill C-11, the valuable and modern aspects of that Bill are merely one example of the legislation which is being enacted world-wide that reflects the latest international standards for data privacy represented by the GDPR and Convention 108+. Irrespective of Bill C-11, it is these international ‘gold standards’ to which Canada’s public sector law should aspire.

Structure of this submission

The rest of this submission follows the numbering of issues adopted by the Discussion Paper, and adopts a similar point-form presentation. At various points important details (sometimes whole principles) have been relegated to four Annexes, making it difficult to ascertain whether the Discussion Paper heads, or the Annexes, are more important. The Annexes are also discussed. Until an exposure draft Bill is available for comment, the proposals will remain unclear.

  1. Changing the title of the Act

The Discussion Paper does not suggest an improved English title. Perhaps ‘Federal Public Sector Data Privacy Act’ would have the virtue of being descriptive.

  1. Modernizing the purpose clause to better reflect the Act’s broader objectives

The proposed objectives of the Act could usefully include the objective of consistency with modern international data privacy standards.

It would also be valuable for the Act to explicitly state that it aims to include dissuasive sanctions against breach of its provisions, and appropriate and accessible compensation for those harmed by such breaches.

  1. Incorporating personal information protection principles from international models in the Privacy Act

As discussed above, the proposed starting point (see Annex 1, 1.2) is fundamentally misguided because it regards a set of principles ultimately derived from the OECD Guidelines of 1980 as its starting point. ‘Interoperability’ must be selective. For example, ‘interoperability’ with APEC Cross-border Privacy Rules (APEC-CBPR), by allowing data exports to US companies merely because are certified as CBPRs-compliant, is sufficient to disqualifies a country obtaining positive EU adequacy status.

  1. Clarifying concepts

Comments on some definition proposals:

  1. Updating rights and obligations, and introducing new ones

Some proposed new rights deserve strong support:

Other proposed new principles are discussed in Annexure 1 (pgs 25-27):

  1. Updating rules on the collection, use, disclosure, and retention of personal information
  1. Allowing a greater role for ‘de-identified’ personal information

The Discussion Paper attempts to dismiss the significance of the dangers of re-identification of personal information, by prefacing its support ‘Despite some well-known anecdotes of de-identified personal information being subsequently re-identified…’. These ‘anecdotes’ are in fact well-documented accounts of horrendous data breaches through failed attempts at de-identification A particularly egregious data breach by the Australian government in relation to Medicare records led the Australian Privacy Commissioner to comment that ‘The first [lesson] is that the de-identification of large and rich datasets for publication to the world at large is extremely difficult’.Footnote 12

The proposals in the Discussion Paper have fundamental flaws because they are based on deeming a particular technical process (defined ‘de-identification’) to be effective, and then deeming other uses of this ‘de-identified’ information not to be in breach of the Act provided appropriate protections are taken. This will be so whether or not the information can, in fact, be re-identified. There needs to be provisions that allow de-identification schemes to be terminated whenever it is shown that re-identification is possible.

Bill C-11 also deals with de-identification, requiring that technical and administrative protections be proportional to the purpose of use of the de-identified data, and the sensitivity of the data.Footnote 13

The Discussion paper then proposes to ‘Create a specific offence for re-identifying personal information that has been de-identified, or for wilful attempts to do so’. In contrast, Bill C-11 creates an exception to any such an offence when re-identification is attempted ‘in order to conduct testing of security safeguards…’ (ie to show to the alleged de-identification is not in fact effective). Such as exception is also necessary in the Privacy Act, if de-identification is not to be based on the principle of ‘shoot the messenger’.

As Geist puts it: ‘De-identification has emerged as a major issue in the world of big data, with many organizations relying on de-identified data for a wide range of purposes. As the public battle over Sidewalk Labs in Toronto demonstrated, some object to any use of their data, even if de-identified’.Footnote 14 This issue deserves far more detailed consideration than it is given in the Discussion Paper, and failure to do so will inevitably result in major problems emerging.

  1. Introducing stronger accountability mechanisms in the Act

In relation to data exports, ‘stronger’ is only correct relative to a very low starting point:

Other proposals are much more positive:

  1. Modernizing transparency practices

Some of the proposals in this section are worthwhile, although the more significant aspects are relegated to Annexes.

Other proposed new principles are discussed in Annex 1 (pgs 25-27) and Annex 3 (pgs 36-39), and it is difficult to see why they have been relegated to the Annexes:

  1. Fostering open dialogue and providing publicly accessible guidance

The proposals under this heading, and in Annex 4.2, are all desirable.

  1. Creating an enhanced compliance framework to address unresolved issues

The following proposals in section 11 (most of which are repeated in Annex 4.3) deserve support:

However, some of the proposals in section 11 must be approached with caution:

Other aspects of enforcement have not been considered in the Discussion Paper, but should be considered:

Acknowledgments: Colin Bennett, Michael Geist and Jill Matthews have provided valuable comments on drafts of this submission, but all responsibility for content remains with the author.

Author’s qualifications; Graham Greenleaf AM has been involved in data privacy law and policy since the mid-1970s. He has been a statutory member of a DPA, adviser to the Australian Privacy Commissioner, co-founder of the Australian Privacy Foundation (APF) and founder of the Asian Privacy Scholars Network (APSN). He is the author of Asian Data Privacy Laws (OUP 2014), and Asia-Pacific Editor of Privacy Laws & Business International Report (UK). In 2010 he was made a Member (AM) of the Order of Australia, for services to the protection of privacy and to free access to legal information. He has prepared reports on the adequacy of the data protection systems of seven Asia-Pacific countries for the European Commission, and was invited to speak in Brussels at the launch of the GDPR in 2018. He represents the APF as an Observer on the Consultative Committee of Convention 108/108+. Over 150 of his articles on data privacy are available at <https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=57970>. More information is on his web pages at <http://www2.austlii.edu.au/~graham/>,