Canadian Privacy Law

PIPEDA Cookie ConsentRequirements Guide

Complete compliance guide for Canadian businesses. Learn what you need to know about PIPEDA cookie consent requirements, implementation, and best practices.

What is PIPEDA?

Personal Information Protection and Electronic Documents Act - Canada's federal privacy law

PIPEDA Basics

  • Applies to private sector organizations in Canada
  • Governs collection, use, and disclosure of personal information
  • Less strict than GDPR - allows implied consent
  • Enforced by Privacy Commissioner of Canada

Cookie Requirements

  • Notice required for cookie collection
  • Implied consent acceptable for some cookies
  • Explicit consent for sensitive data
  • Opt-out mechanism required

PIPEDA's 10 Privacy Principles

Core principles that guide PIPEDA compliance for cookies and personal information

1. Accountability

Organizations are responsible for personal information under their control and must designate someone accountable for compliance.

2. Identifying Purposes

Organizations must identify the purposes for collecting personal information before or at the time of collection.

3. Consent

Knowledge and consent of the individual are required for the collection, use, or disclosure of personal information.

4. Limiting Collection

Organizations must limit collection to what is necessary for the identified purposes and collect it fairly and lawfully.

5. Limiting Use & Disclosure

Personal information must not be used or disclosed for purposes other than those for which it was collected, except with consent or as required by law.

6. Accuracy

Personal information must be as accurate, complete, and up-to-date as necessary for the purposes for which it is to be used.

7. Safeguards

Organizations must protect personal information against loss or theft, as well as unauthorized access, disclosure, copying, use, or modification.

8. Openness

Organizations must make readily available to individuals specific information about their policies and practices relating to the management of personal information.

9. Individual Access

Upon request, an individual must be informed of the existence, use, and disclosure of their personal information and be given access to that information.

10. Challenging Compliance

An individual must be able to challenge an organization's compliance with these principles and have the matter addressed by the organization.

Provincial Privacy Laws in Canada

Some provinces have their own privacy legislation that may be more stringent than PIPEDA

British Columbia (PIPA-BC)

  • • Applies to private sector organizations in BC
  • • Similar to PIPEDA but with some differences
  • • More specific requirements for consent
  • • Stricter enforcement by BC Privacy Commissioner

Alberta (PIPA-AB)

  • • Applies to private sector organizations in Alberta
  • • Generally similar to PIPEDA
  • • Some additional requirements for data breach notification
  • • Alberta Information and Privacy Commissioner oversight

Quebec (Bill 64)

  • • Modernized Quebec privacy law
  • • More similar to GDPR requirements
  • • Explicit consent requirements
  • • Higher penalties for violations

Federal Government (Privacy Act)

  • • Applies to federal government institutions
  • • Different from PIPEDA
  • • Privacy Commissioner of Canada oversight
  • • Separate from private sector requirements

PIPEDA Cookie Consent Requirements

Understanding what's required for cookie compliance under Canadian law

Notice Requirements

Under PIPEDA, you must provide clear notice about cookie collection:

  • What cookies are being collected
  • Why cookies are being collected
  • How cookies will be used
  • Who will have access to the information
  • How long cookies will be stored

Consent Types

Implied Consent (Acceptable for)

  • Basic website functionality cookies
  • Analytics cookies (with clear notice)
  • Non-sensitive personal information
  • Obvious and reasonable purposes

Explicit Consent (Required for)

  • Sensitive personal information
  • Marketing/advertising cookies
  • Third-party tracking
  • Data sharing with third parties

Opt-Out Mechanism

PIPEDA requires that users can opt-out of cookie collection:

  • Provide clear opt-out instructions
  • Make opt-out as easy as opt-in
  • Honor opt-out requests promptly
  • Don't penalize users for opting out
  • Allow granular opt-out by cookie category

Privacy Policy Requirements

Your privacy policy must include specific cookie information:

  • Complete list of cookies used
  • Purpose and legal basis for each cookie
  • Cookie retention periods
  • Third-party cookie information
  • User rights and how to exercise them
  • Contact information for privacy inquiries

PIPEDA Cookie Implementation Guide

Step-by-step guide to implementing PIPEDA-compliant cookie consent

1Cookie Audit

Conduct a comprehensive audit of all cookies on your website:

  • Identify all first-party and third-party cookies
  • Categorize cookies by purpose (necessary, analytics, marketing)
  • Document data collection practices
  • Assess sensitivity of information collected

2Notice Implementation

Implement clear notice about cookie collection:

  • Add cookie notice to your website
  • Update privacy policy with cookie details
  • Provide accessible cookie information
  • Use plain language, not legal jargon

3Consent Management

Set up appropriate consent mechanisms:

  • Implied consent for non-sensitive cookies
  • Explicit consent for marketing/sensitive cookies
  • Clear opt-out mechanisms
  • Granular consent options where appropriate

4Ongoing Compliance

Maintain ongoing compliance:

  • Regular cookie audits
  • Update notices when practices change
  • Train staff on privacy requirements
  • Monitor for compliance violations

PIPEDA Enforcement and Penalties

Understanding the consequences of non-compliance

Privacy Commissioner Powers

  • Investigate complaints and initiate investigations
  • Issue compliance orders
  • Recommend corrective measures
  • Public naming and shaming
  • Court applications for enforcement

Penalties and Consequences

Administrative Penalties

Up to $100,000 CAD

For violations of PIPEDA

Reputational Damage

Significant

Public naming, media coverage

Legal Costs

High

Compliance orders, court proceedings

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