In the course of our investigations, I frequently found myself
reflecting on two broader questions: first, I wondered how best law
could protect the personal information of Canadians—and by extension
the privacy of Canadian citizens—in the Canadian marketplace. Examining
the data brokerage industry afforded me the opportunity to consider the
effectiveness of privacy legislation in the face of an industry whose
sole purpose is to assemble and trade personal information about
Canadians. Second, I wondered about who was the biggest culprit
responsible for the slow erosion of personal informational privacy that
has occurred in Canada over the last several decades. Having the
opportunity to consider how data on Canadians was collected, compiled,
distributed and used in the data brokerage industry afforded me the
opportunity to consider culpability from several perspectives.
Given that Parliament has recently reconvened for the fall sitting—and cognizant that PIPEDA,
the federal private sector privacy legislation in force in much of the
country, is due for review—I thought I might offer up a few thoughts on
these points.
With respect to the protection of the personal information, it is
clear that Canadians enjoy greater informational privacy than our US
counterparts—thanks primarily, it would appear, to the impact of
private sector privacy legislation. There is seemingly less information
available for purchase online about Canadians than Americans [1] , and
several companies claim to have curtailed operations or ceased
operating altogether in Canada following the introduction of Canada’s
private sector privacy legislation. Using provisions contained in the
legislation, Canadian consumers can learn what information Canadian
companies have about them and can seek the correction of errors in
those records—rights which are unknown to American consumers. In this
light, Canada’s data protection laws are arguably the single most
valuable instrument available for the protection of Canadian
informational privacy.
But these laws are not perfect. This legislation—and most glaringly
PIPEDA—is hamstrung by the absence of robust enforcement provisions.
During my time in private legal practice, it was an all-too-common
occurrence that once a client was apprised both of the extensive
obligations of the legislation and the ramifications of non-compliance,
the client would elect to ignore the law. And there is reasonably good
evidence to suggest that private sector organizations that have
attempted to comply with the legislation have done so poorly: see, for
example, CIPPIC’s recently published study
examining the compliance (or relative lack thereof) of retailers with
Canada’s data protection laws. The legislation’s lack of a robust
enforcement mechanism undoubtedly plays a role in the high rates of
non-compliance CIPPIC’s found.
To a lesser extent, Canada’s private sector privacy laws have also
been maligned for the way they define “personal information.” These
definitions qualify the “personal information” to which the laws
pertain to information about “identifiable individuals.” As such,
information that has been “anonymized” accordingly falls outside of the
scope of the legislation. However, data anonymity specialists
(including the terrific Latanya Sweeney)
have been demonstrating for some time the relative ease and accuracy
with which “anonymized” information can be reconnected to identifiable
individuals.
Interestingly, my own research into the data brokerage industry
indicated that many of these companies were not particularly concerned
with the granularity of the information they attributed to individual
citizens. For example, several Canadian data compilers rely on data—like public-use microfiles—that
Statistics Canada makes available and considers to be “sufficiently
anonymized or aggregated to be made publicly available.” Absent the
services of someone like Dr. Sweeney, it may indeed be difficult to
connect this information to a particular household. However these data
compilers use the aggregated information (like mean household income
for dwellings located in a particular postal code set) to attribute
characteristics to all households in the set. This information—which on
a household to household basis may be erroneous—is nonetheless usually
of sufficient accuracy for marketing purposes. As such, despite
Statistics Canada’s anonymization efforts, this information is still
being used by marketers as personal information, in order to build
broader and richer—if somewhat fuzzy—profiles of Canadians.
Given this, some in the privacy community have suggested that the
definition of “personal information” should be amended to include all
information about an individual, whether identifiable or not. I am not
confident, however, that this would represent a feasible or practical
response to the problems created by the use of anonymized or aggregated
information to impute characteristics to Canadian households. That
issue might better be addressed by legislation that precludes the use
of data for certain purposes, as opposed to the wholesale revision of
the definition of “personal information” itself.
These (and admittedly other) shortcomings aside, Canada’s privacy
legislation has been a valuable tool for protecting the informational
privacy of Canadian citizens. With certain amendments, the legislation
could come to represent a truly effective set of tools to be used in
the fight to protect the informational privacy still enjoyed by
Canadians.
However, these tools will only be effective if the activities of the
culprit primarily responsible for the erosion of the informational
privacy of Canadians can be stymied. “Who is this culprit?,” you may
ask. There are—both unfortunately and perhaps unsurprisingly—an
abundance of candidates, given the actors and factors that have had a
significant impact on informational privacy of Canadians in the last
decade: the abundance of cheap and powerful digital database
technologies, the growth of the internet, the emergence of the data
brokerage industry and the development of a culture of fear in the US,
are but a few.
However, I believe the primary culprits responsible for the erosion
of informational privacy are, in fact, Canadians themselves.
In examining the sources of the data commonly exchanged in the data
brokerage industry, I was astounded to discover how much sensitive data
is provided willingly and openly—for little or no consideration—by
Canadians. Admittedly, there are a number of collection vehicles
wherein the language used to explain the purpose for the collection and
planned use for the data is vague and / or misleading—if any language
is used at all. But there were a remarkable number of occasions where
the collection vehicles used clear and unequivocal language to explain
the reasons for collection and use, and Canadians still appeared to
respond in droves. There are numerous examples—Canadians complete
surveys and questionnaires on sensitive topics, enter contests or
offers that request extensive information about buying habits or
preferences, and obtain free product samples in exchange for providing
their personal details. The most recent iteration of one survey used
extensively in the Canadian market is over 91 pages long, asking an
exhaustive list of sensitive and highly personal questions about the
respondent. [2] While consumers are often offered coupons or contest
entries in exchange for completing the survey, many surveys offer no
reward for their completion at all.
The aforementioned collection vehicles are examples of circumstances
where it should be reasonably clear to the respondent (certainly if the
data collector is complying with the requisite legislation) that there
is little to be gained by them in disclosing their valuable personal
information. Less clear, perhaps, are those circumstances where
information is collected from Canadians contemporaneously with the
acquisition of goods or services, whether over the internet or via
traditional channels. Book, music and movie clubs, along with newspaper
and magazine publishers, are fertile sources of information about the
hobbies and interests of Canadians. General retailers and service
providers are also rich sources.
Drawing on all of this, data brokers have accrued and trade in a
broad range of information on many Canadians, including marital status,
age, religion, income, property ownership, investments, health
information, habits, interests, diet and credit card ownership, amongst
others. One Canadian data broker claims to have a file containing the
names of 8.7 million Canadians organized by preferred genre of book;
8.1 million organized by hobby, and another 3.1 million organized by
the types of financial investments they own and plan to purchase.
Another broker offers information on households in which one or more
members has experienced any one of a variety of health conditions
including ADHD, arthritis, bedwetting, depression, diabetes, heart or
kidney disease, high blood pressure or cholesterol, lactose
intolerance, macular degeneration, migraines, neck pain, nut allergies,
urinary tract and yeast infections.
All of this information has been, for the most part, willingly
provided by Canadians. And while much has been written about growing
public concerns about privacy, the actions of Canadians do not accord
with their purported fears. The results of a survey conducted by
Forrester Research in 2005 found that “…while 86% of consumers admitted
to discomfort with disclosing information to marketers, they
participated in online surveys and research for free products or
coupons, and entered competitions or sweepstakes at rates nearly equal to consumers who aren’t as concerned. [emphasis added]” [3]
Given this, it is Canadian citizens themselves that I see as posing
the single greatest threat to their own informational privacy. The
interests of Canadians do not appear to accord with their actions in
this respect, which I would assume to be the product of a lack of
education about how individuals can themselves be more responsible
about protecting their own personal information. There is no question
that being privacy savvy takes time and energy. However, the public
must be invested with some of the responsibility for safeguarding their
own personal information; otherwise, personal data privacy will
continue to erode, despite the most finely crafted legislation, the
efforts of the Privacy Commissioners and the lobbying of privacy
advocates.
In this respect, government does have a role to play in educating
the public about why informational privacy is important, and how
personal information can be protected. In addition to making the
changes to PIPEDA outlined above, government might also work with
industry to develop and require the use of short uniform privacy policy
templates, which would enable citizens to review and compare
organizations’ privacy policies more quickly.
Similarly, those of us who have an appreciation of the importance of
data privacy have obligations as well. We must resist the
too-often-pursued predilection to “preach to the choir,” and instead
make a concerted effort to educate the public about the importance of
personal information privacy. An educated and engaged public can be far
more effective in protecting their own informational privacy interests
than even the most well-funded Privacy Commissioner or privacy
advocate.
[1] In this context, I am considering information that is extant and
generally available for purchase, as opposed to the use of the internet
to contact parties who might—via pretexting or other means—obtain
detailed information about an individual.
[2] It should be noted that this information is not typically made
available with names and addresses attached; rather, it is released in
an aggregated format.
[3] See "Privacy worries don't keep consumers out of online surveys and promotions" (Jan.30, 2006) Internet Retailer, .
Jeffrey Vicq
is a lawyer and consultant, and candidate in the Master of Laws (with
Concentration in Law and Technology) program at the University of
Ottawa.