{"id":55962,"date":"2026-09-28T14:18:00","date_gmt":"2026-09-28T18:18:00","guid":{"rendered":"https:\/\/www.millerthomson.com\/?p=55962"},"modified":"2026-09-28T15:20:55","modified_gmt":"2026-09-28T19:20:55","slug":"privacy-data-protection-and-cybersecurity-what-foreign-companies-must-consider-before-entering-the-canadian-market","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/publications\/doing-business-in-canada\/privacy-data-protection-and-cybersecurity-what-foreign-companies-must-consider-before-entering-the-canadian-market\/","title":{"rendered":"Privacy, data protection, and cybersecurity: What foreign companies must consider before entering the Canadian market\u00a0"},"content":{"rendered":"\n<p><strong>Who this is for: GCs<\/strong>, Chief Privacy Officers, CTOs, and compliance leads at companies outside Canada that collect, use, or disclose personal information in the course of commercial activities, or that are deploying AI, sending marketing communications, or operating in Canada&#8217;s regulated financial sector.&nbsp;<\/p>\n\n\n\n<p><strong>The importance of a Canadian specific privacy strategy:<\/strong> Foreign companies entering Canada often assume that their existing privacy program, designed for privacy regimes such as the GDPR or the CCPA, can simply be extended to Canadian operations. While those frameworks provide a strong foundation, they do not automatically address Canada&#8217;s legal requirements. Differences in concepts such as consent rules, breach reporting obligations, marketing requirements, or Quebec specific automated decision-making transparency obligations can require targeted modifications before launching in Canada. A Canadian-specific legal review can help determine whether an organization&#8217;s existing global privacy program requires adjustments before it begins operating in Canada.&nbsp;<\/p>\n\n\n\n<p><strong>In this article<\/strong>:<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<ul class=\"wp-block-list\">\n<li><a href=\"#private-sector\">Private sector privacy legislation<\/a><\/li>\n\n\n\n<li><a href=\"#artificial-intelligence\" type=\"internal\" id=\"#partnerships\">Artificial intelligence<\/a><\/li>\n\n\n\n<li><a href=\"#casl\">Canada\u2019s Anti-Spam Legislation<\/a><\/li>\n\n\n\n<li><a href=\"#compliance-checklist\">Compliance checklist for businesses entering Canada\u00a0<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.millerthomson.com\/en\/insights\/publications\/doing-business-in-canada\/\">Read more on Doing Business in Canada<\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" id=\"private-sector\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"padding-top:var(--wp--preset--spacing--medium)\">1. Private sector privacy legislation&nbsp;<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">a. Canada\u2019s framework&nbsp;<\/h3>\n\n\n\n<p>To operate in Canada, foreign businesses need to adapt their privacy practices to ensure they are compliant with Canada\u2019s framework. Failing to identify the applicable regime early can lead to redesigning privacy programs, delayed product launches, regulatory investigations and costly remediation.&nbsp;<\/p>\n\n\n\n<p>Canada&#8217;s federal private-sector privacy law, the\u202f<em>Personal Information Protection and Electronic Documents Act<\/em>\u202f(\u201c<strong>PIPEDA<\/strong>\u201d), governs the collection, use and disclosure of personal information in the course of commercial activities by private sector entities in Canada. Notably, while PIPEDA applies to all customer personal information, it does not apply to personal employee information unless it is held by a federal work, undertaking, or business. Further, given Canada\u2019s federalist system, some provinces have their own private sector privacy legislation which has been deemed \u201csubstantially similar\u201d to PIPEDA, including British Columbia\u2019s\u202f<em>Personal Information Protection Act<\/em>\u202f, Alberta\u2019s\u202f<em>Personal Information Protection Act<\/em>, and Quebec\u2019s more stringent \u202f<em>An Act Respecting the Protection of Personal Information in the Private Sector<\/em>. Depending on where an organization operates, more than one law can apply to a single processing activity and organizations may need to deal with more than one privacy commissioner\u2019s office. Organizations should also review arrangements with third-party service providers that collect, store or process personal information on their behalf, as Canadian privacy laws require organizations to remain accountable for personal information even when processing functions are outsourced.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">b. Breach reporting obligations&nbsp;<\/h3>\n\n\n\n<p>Cyber incidents frequently become regulatory issues in Canada. Organizations that experience certain privacy or cybersecurity incidents may have only a short period to assess whether notification obligations are triggered. Missing a mandatory notification deadline is itself an offence.&nbsp;<\/p>\n\n\n\n<p>PIPEDA requires the reporting to the Office of the Privacy Commissioner (the \u201c<strong>OPC<\/strong>\u201d) of all breaches of security safeguards that could lead to a \u201creal risk of significant harm\u201d for affected individuals. All impacted individuals must also be notified.&nbsp; The real risk of significant harm assessment must be conducted as soon as reasonably possible after the breach is discovered. Organizations should begin assessing their notification obligations promptly and should not delay that assessment while waiting for every aspect of a forensic investigation to be completed.&nbsp;<\/p>\n\n\n\n<p>Indirect notification is possible but only under certain circumstances. Alberta has a similar notification requirement, but the primary obligation is to notify the Commissioner, who may then order individual notification. However, Quebec\u2019s private sector privacy legislation includes mandatory breach notification to the Commission d\u2019acc\u00e8s \u00e0 l\u2019information for breaches of security safeguards that could lead to a \u201crisk of serious injury\u201d. Currently, notification in British Columbia is encouraged but not legally required. We assist businesses in developing incident response protocols before an incident occurs and provide immediate advice during cyber incidents, including assessing reporting obligations, preparing regulator notifications and managing communications with affected individuals.&nbsp;<\/p>\n\n\n\n<p>Financial institutions and other federally regulated entities face cybersecurity reporting obligations that extend beyond traditional privacy compliance. The Office of the Superintendent of Financial Institutions (&#8220;<strong>OSFI<\/strong>&#8220;) establishes technology, cyber and operational resilience requirements for federally regulated financial institutions, including banks, federal credit unions, insurance companies, and loan and trust companies. In particular, Guideline B-13: Technology and Cyber Risk Management establishes comprehensive expectations relating to technology governance, cyber risk management, third-party service provider oversight, incident response, and operational resilience. In addition, OSFI released an advisory that expects federally regulated financial institutions to report technology and cyber security incidents meeting specified reporting thresholds within 72 hours of determining that an incident is reportable. Importantly, these reporting obligations extend beyond incidents involving personal information and may apply to broader operational or technology events that could affect the institution&#8217;s operations, customers or financial sector stability. Businesses entering Canada&#8217;s regulated financial sector should ensure that their global incident response, technology governance and third-party risk management frameworks are aligned with OSFI&#8217;s expectations before commencing operations.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">c. Enforcement&nbsp;<\/h3>\n\n\n\n<p>The general enforcement framework under PIPEDA tracks the following stages:&nbsp;&nbsp;<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>a complaint is made or an issue is identified by a regulator;&nbsp;<\/li>\n\n\n\n<li>the OPC conducts an investigation;&nbsp;&nbsp;<\/li>\n\n\n\n<li>enforcement steps are taken either through obtaining a court order, disclosing information to the public, auditing the personal information management practices of an organization, entering into a compliance agreement, or reporting offences to relevant authorities.&nbsp;&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>The OPC is also able to pursue fines for non-compliance with data breach notification requirements but not for other violations of PIPEDA. At this stage, the OPC does not have order-making authority. However, the proposed Bill C-36 would give the regulator broader enforcement powers as well as introducing a private right of action. We assist organizations responding to privacy investigations, managing regulator communications and strengthening compliance programs following regulatory inquiries.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">d. Future developments and industry specific guidance&nbsp;<\/h3>\n\n\n\n<p>PIPEDA has been undergoing reform efforts since 2020. The most recent attempt is Bill C-36. On June 15, 2026, Bill C-36: <em>An Act to enact the Protecting Privacy and Consumer Data Act, to amend the Personal Information Protection and Electronic Documents Act and to make amendments to other Acts<\/em> was introduced to Parliament and passed its first reading. If passed, Bill C-36 would replace the privacy provisions of PIPEDA with the <em>Protecting Privacy and Consumer Data Act<\/em>, introducing stronger enforcement powers, administrative monetary penalties, more prescriptive accountability requirements, a private right of action, and new rules governing anonymized&nbsp; and de-identified information and legitimate interests. Although the Bill is expected to undergo further revisions before being enacted, businesses should monitor its progress and consider whether existing privacy programs will remain fit for purpose if the reforms proceed.&nbsp;<\/p>\n\n\n\n<p>Businesses that store or process electronic communications should also monitor proposed reforms to Canada&#8217;s lawful access framework. Bill C-22 would modernize Canada&#8217;s lawful access regime by expanding investigative powers and introducing new obligations relating to access to electronic information. If enacted, technology companies, telecommunications providers and other organizations holding electronic data may face new compliance, record-keeping and response obligations.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Key changes under Bill C-36 that foreign companies should begin planning for&nbsp;<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Organizations will be required to implement and maintain a privacy management program, including policies, practices and procedures governing the protection of personal information, the handling of access requests and complaints, employee training, and materials explaining the organization&#8217;s privacy policies and practices.&nbsp;<\/li>\n\n\n\n<li>Consent requirements become more prescriptive, with detailed statutory requirements for obtaining valid consent. Bill C-36 also introduces several new exceptions to consent, including a legitimate interest exception in prescribed circumstances.&nbsp;<\/li>\n\n\n\n<li>Individual rights are expanded, including rights to data portability and stronger deletion rights.&nbsp;<\/li>\n\n\n\n<li>Organizations using automated decision systems would be subject to Bill C-36\u2019s transparency and access requirements, including an obligation, on request, to provide individuals with an explanation of automated decisions that have significant effects on them.&nbsp;<\/li>\n\n\n\n<li id=\"artificial-intelligence\">A new statutory private right of action would permit individuals, in prescribed circumstances, to seek damages following certain findings or decisions by the Commissioner or Tribunal, creating litigation exposure that does not exist under PIPEDA.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">2. Artificial intelligence\u202f&nbsp;<\/h2>\n\n\n\n<p>While Canada has not yet enacted comprehensive artificial intelligence (&#8220;AI&#8221;) legislation, organizations deploying AI are already subject to a growing patchwork of privacy, employment and sector-specific legal requirements, together with increasing regulatory guidance regarding responsible AI governance. Businesses deploying AI into their operations, including the use of generative AI in customer-facing services, should therefore monitor Canada&#8217;s evolving legal landscape, even in the absence of a comprehensive AI statute.&nbsp;<\/p>\n\n\n\n<p>On June 4, 2026, the Government of Canada released <em>AI for All<\/em>, its long-anticipated national artificial intelligence strategy (the &#8220;Strategy&#8221;). The Strategy advances substantial economic initiatives and provides important signals regarding the government&#8217;s approach to AI governance. However, it does not introduce comprehensive AI legislation and confirms that such legislation is not currently contemplated. The previously tabled <em>Artificial Intelligence and Data Act<\/em> (&#8220;AIDA&#8221;) is therefore unlikely to be revived in its original form. While the Strategy establishes important priorities for future AI policy, it does not create binding legal obligations for private organizations.&nbsp;<\/p>\n\n\n\n<p>Nevertheless, Canadian regulators are increasingly setting expectations for responsible AI governance through non-binding guidance. For example, in 2026, the Information and Privacy Commissioner of Ontario and the Ontario Human Rights Commission jointly issued principles for the responsible development, deployment and use of AI. The guidance emphasizes that AI systems should be valid and reliable, safe, privacy-protective, human rights affirming, transparent and accountable throughout their life cycle. It also encourages organizations to implement governance frameworks, conduct risk assessments, maintain appropriate human oversight, and continuously monitor AI systems to help protect privacy, prevent discrimination, and maintain public trust. While not legally binding, this guidance reflects the direction Canadian regulators are taking and provides a useful benchmark for organizations implementing AI technologies.&nbsp;<\/p>\n\n\n\n<p>Parliament is also considering legislative proposals that would impose new digital safety obligations. Bill C-34, the proposed <em>Safe and Secure Digital Platforms Act<\/em>, would enact the <em>Safe Social Media Act<\/em>, creating new obligations for designated social media platforms and AI chatbot services, together with a new Digital Safety Commission of Canada to oversee compliance. Although the legislation has not yet been enacted, businesses offering user-generated content platforms or AI conversational services should monitor its progress closely, as compliance planning may require significant operational changes.&nbsp;<\/p>\n\n\n\n<p>Quebec has also introduced statutory transparency requirements for certain automated decision-making processes. Under Quebec&#8217;s private sector privacy legislation, organizations that make decisions based exclusively on the automated processing of personal information must notify individuals accordingly. Upon request, individuals must be informed of the personal information used, the reasons and principal factors that led to the decision, and their right to have the personal information corrected, where appropriate. Organizations must also provide individuals with an opportunity to submit observations to a member of the organization&#8217;s personnel who is able to review the decision. Businesses using AI or other automated decision-making tools should ensure appropriate transparency, governance and review mechanisms are in place, particularly where such decisions affect individuals in Quebec.&nbsp;<\/p>\n\n\n\n<p>Even in the absence of comprehensive AI legislation, sector-specific AI requirements are beginning to emerge. For example, Ontario&#8217;s Bill 149 amended the <em>Employment Standards Act, 2000<\/em> to require employers with 25 or more employees to disclose in publicly advertised job postings whether artificial intelligence is used to screen, assess or select applicants, once the relevant provisions are proclaimed into force.&nbsp;<\/p>\n\n\n\n<p id=\"casl\">Businesses that begin implementing AI governance measures now, including mapping data flows, documenting AI decision-making processes, conducting risk assessments, establishing oversight mechanisms and monitoring AI systems throughout their life cycle, will be better positioned to respond as Canada&#8217;s AI regulatory framework continues to evolve. We work with organizations to assess AI-related legal risks, develop governance frameworks, and align AI deployment with Canada&#8217;s evolving privacy, human rights and digital governance expectations.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">3. Canada\u2019s Anti-Spam Legislation&nbsp;<\/h2>\n\n\n\n<p>When employing new marketing practices in Canada, organizations need to ensure that their activities are compliant with Canada&#8217;s Anti-Spam Legislation (\u201c<strong>CASL<\/strong>\u201d). Companies expanding into Canada often discover that existing marketing automation, customer onboarding, or email campaigns must be modified before launch.&nbsp;<\/p>\n\n\n\n<p>CASL regulates, among other things, the transmission of \u201ccommercial electronic messages\u201d (\u201c<strong>CEMs<\/strong>\u201d) by any person to a recipient in Canada. CASL is enforced by the Competition Bureau, the Canadian Radio-television and Telecommunications Commission, and the OPC. CASL applies to CEMs, with some exceptions. If CASL is found to apply, the legislation contains three major obligations: (i) the sender has obtained the recipient&#8217;s consent or another statutory basis for sending the message applies; (ii) the sender has been identified; and (iii) there is an unsubscribe feature included in the electronic message that is prominent and can be readily performed. Organizations that fail to comply with CASL may be subject to significant penalties.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What to do before your first Canadian marketing campaign&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Audit your contact database to identify Canadian recipients and determine the applicable CASL consent basis for each.&nbsp;<\/li>\n\n\n\n<li>Review consent collection mechanisms, web forms, checkout flows and event registrations to ensure they support the intended CASL consent basis.&nbsp;<\/li>\n\n\n\n<li>Implement processes to track the expiry of implied consent, where relied upon, including within your marketing automation system where appropriate.&nbsp;&nbsp;<\/li>\n\n\n\n<li>Ensure all commercial electronic messages to Canadian recipients include proper sender identification and a functional, prominent unsubscribe mechanism.&nbsp;<\/li>\n\n\n\n<li id=\"compliance-checklist\" style=\"padding-bottom:var(--wp--preset--spacing--medium)\">Train marketing and customer success teams on CASL&#8217;s requirements before any Canadian-facing campaign is launched.&nbsp;<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-group has-base-2-background-color has-background is-layout-constrained wp-container-core-group-is-layout-8217c53c wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--medium);padding-right:var(--wp--preset--spacing--medium);padding-bottom:var(--wp--preset--spacing--medium);padding-left:var(--wp--preset--spacing--medium)\">\n<h2 class=\"wp-block-heading\">Compliance checklist for businesses entering Canada\u00a0<\/h2>\n\n\n\n<p>Before launching products or services in Canada, businesses should:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Consider which Canadian privacy laws apply to their operations, including whether provincial privacy legislation in British Columbia, Alberta or Quebec applies in addition to PIPEDA.&nbsp;<\/li>\n\n\n\n<li>Review existing privacy policies, consent mechanisms and internal privacy practices to ensure they comply with Canadian legal requirements.&nbsp;<\/li>\n\n\n\n<li>Review procedures for identifying, assessing and reporting privacy and cybersecurity incidents, including mandatory breach notification obligations.&nbsp;<\/li>\n\n\n\n<li>Assess whether sector-specific requirements apply, such as OSFI obligations for federally regulated financial institutions.&nbsp;<\/li>\n\n\n\n<li>Review contracts with third-party service providers to ensure appropriate privacy, security and incident response obligations are addressed.&nbsp;<\/li>\n\n\n\n<li>Implement governance measures for the use of artificial intelligence, including documenting AI use cases, conducting risk assessments, establishing oversight processes and monitoring AI systems throughout their life cycle.&nbsp;<\/li>\n\n\n\n<li>Determine whether any AI-specific transparency obligations apply, including Quebec requirements related to automated decision making based on personal information and emerging requirements relating to AI-assisted hiring processes.&nbsp;<\/li>\n\n\n\n<li>Review marketing, customer onboarding and electronic communications to ensure compliance with CASL.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Canada&#8217;s privacy, cybersecurity and AI landscape continues to evolve, with significant legislative reforms and regulatory guidance expected in the coming years. Businesses entering or expanding into the Canadian market should regularly review their privacy, cybersecurity and AI governance practices to ensure they remain compliant as new requirements emerge.&nbsp;<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"padding-top:var(--wp--preset--spacing--medium)\">How Miller Thomson can help&nbsp;<\/h2>\n\n\n\n<p>Miller Thomson&#8217;s Privacy and Cybersecurity team advises foreign companies entering Canada on the full spectrum of privacy and technology compliance, from initial privacy law mapping and program gap analysis through breach response, regulator engagement, CASL compliance, AI governance, and Bill C-36 readiness planning.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Speak with a Miller Thomson <a href=\"https:\/\/www.millerthomson.com\/en\/expertise\/technology-ip-and-privacy\/privacy-and-cybersecurity\/\" type=\"expertise\" id=\"1945\">Privacy and Cybersecurity lawyer<\/a> about your Canadian compliance program&nbsp;&nbsp;<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Who this is for: GCs, Chief Privacy Officers, CTOs, and compliance leads at companies outside Canada that collect, use, or disclose personal information in the course of commercial activities, or that are deploying AI, sending marketing communications, or operating in Canada&#8217;s regulated financial sector.&nbsp; The importance of a Canadian specific privacy strategy: Foreign companies entering [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":56136,"parent":53629,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[632],"insight-format":[742],"class_list":["post-55962","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publications"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Privacy, data protection, and cybersecurity: What foreign companies must consider before entering the Canadian market\u00a0 | Miller Thomson<\/title>\n<meta name=\"description\" content=\"Entering the Canadian market? 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