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CanadaB次元官网网址檚 tech firms look to Europe for direction after federal laws stall

Prorogation wipes parliamentary bills, meaning firms using best guesses to guide decisions
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Canadian tech companies say they are patching together their own standards, mostly borrowed from European laws, to guide them through the limbo of prorogation. Hands type on a computer keyboard in Toronto in this Sunday, Oct. 9 photo illustration. THE CANADIAN PRESS/Graeme Roy

Canadian tech companies say they are patching together their own standards, mostly borrowed from European laws, to guide them through the limbo of prorogation.

When Prime Minister Justin Trudeau prorogued Parliament until March 24, that automatically wiped tabled cybersecurity, privacy, artificial intelligence, data and online harms bills from the agenda.

Tech companies which had eagerly been watching them wind through Parliament were then faced with the reality that for these bills to become law, they would have to be reintroduced and go through readings and debate once more or be reinstated at their previous stage through unanimous consent of the House or a motion to that effect.

B次元官网网址淚tB次元官网网址檚 another kick down, right?B次元官网网址 said Will Christodoulou, co-founder of Toronto-based fintech startup Cyder.

B次元官网网址淚tB次元官网网址檚 going to have to get reread in Parliament and going to have to go through all those processes again B次元官网网址 but itB次元官网网址檚 like, when is that going to be?B次元官网网址

While companies wait for Parliament to reconvene and then decide which bills to revive, many say they are choosing the most advanced and strict international regulations to abide by.

In most cases, those regulations come from Europe.

B次元官网网址淎 lot of things they do, we typically would just copy,B次元官网网址 Christodoulou said.

Patricia Thaine, the co-founder and chief executive of data protocol firm Private AI, agreed.

Without updated Canadian legislation, she said most large companies will likely comply with the most stringent regulations B次元官网网址 namely the European UnionB次元官网网址檚 General Data Protection Regulation B次元官网网址 and then make adaptations for other markets theyB次元官网网址檙e in with more local requirements.

GDPR is an expansive piece of legislation that requires anyone handling the data of EU citizens or residents to only keep personally identifying information for as long as necessary and ensure any processing prioritizes security, integrity, and confidentiality.

Violating the law comes with high penalties that max out at the higher of 鈧20 million or four per cent of global revenue. Users also have the right to seek compensation for damages.

Bill C-27 was set to modernize CanadaB次元官网网址檚 Personal Information Protection and Electronic Documents Act (PIPEDA), which dates back to 2000 but had one of its last major updates in 2015.

The bill would have created three new acts rooted in consumer privacy, data protection and AI guardrails. Increased fines for certain serious contraventions of the law would be the higher of five per cent of gross global revenue or $25 million.

Thaine said she saw value in Bill C-27 because PIPEDA fines are B次元官网网址減retty low, so there isnB次元官网网址檛 that much incentive for companies to actually comply with data protection regulations.B次元官网网址

B次元官网网址淚tB次元官网网址檚 a pretty outdated legislation that weB次元官网网址檙e dealing with here and I worry as a Canadian about what data-handling practices are out there for the data that we provide to companies,B次元官网网址 she said.

She also saw it as important for the country to offer direction around AI.

B次元官网网址淣ot having an AI legislation itself just really lets companies decide for themselves what it is that they need to do, which B次元官网网址 can lead to certain questionable decisions,B次元官网网址 she said.

But Antoine Guilmain, a partner at Gowling WLG and co-lead of the firmB次元官网网址檚 national cybersecurity and data protection law group, argued B次元官网网址渋tB次元官网网址檚 not like thereB次元官网网址檚 nothing in Canada at the moment.B次元官网网址

PIPEDA is B次元官网网址渘ot as modern as we would like it to beB次元官网网址 but B次元官网网址渋tB次元官网网址檚 still something that works,B次元官网网址 he said.

The federal government also has a voluntary AI code of conduct any organization can sign. Signatories promise to outfit their AI systems with risk mitigation measures, use adversarial testing to uncover vulnerabilities in such systems and keep track of any harms the technology causes.

Then, there are the provinces filling in the gaps. Guilmain pointed to Law 25 in Quebec, which requires organizations to have privacy officers, report privacy breaches and increase transparency and consent required to collect personal information.

The law can be used as a reference for organizations who were watching Bill C-27 along with Bill C-26 and Bill C-72.

Bill C-26, which made it all the way to the Senate before it was amended and sent back to the House of Commons, would have boosted cybersecurity requirements for federally regulated industries.

Bill C-72, which made it to its second reading at the House of Commons, would have made it easier for information to be securely shared between health care providers, patients and tech firms offering medical services.

Robert Fraser had his eye on the interoperability bill because his Vancouver-based firm, Molecular You, offers personalized health assessments that often rely on medical data.

Interoperability has long been B次元官网网址渁 challengeB次元官网网址 in Canada, especially when the country is compared with the U.K. and U.S., where Fraser has observed more progress.

B次元官网网址淭ime doesnB次元官网网址檛 seem to matter so much in Canada. We take a leisurely pace,B次元官网网址 he said.

B次元官网网址淚B次元官网网址檓 sure politicians are working very hard and lawmakers the same, but itB次元官网网址檚 frustrating, I think, to an industry that really wants to get things done. We donB次元官网网址檛 have all the time in the world.B次元官网网址





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