What Is PIPEDA?

The Personal Information Protection and Electronic Documents Act (PIPEDA), introduced in April 2000, is a Canadian federal law that governs the collection, use, and disclosure of personal information by the private sector. Often referred to as Canada’s federal privacy law, PIPEDA sets the ground rules for how private sector organizations collect, use or disclose personal information in a fair and lawful manner. Similar to the EU’s data protection rules laid out in the General Data Protection Regulation (GDPR), PIPEDA was enacted to ensure the security and privacy of protected data and to promote electronic commerce through responsible data handling and transparent data management practices. PIPEDA operates alongside provincial or territorial governments that may enforce their own privacy laws, provided they are recognized as substantially similar privacy laws under federal standards.

What Are the Benefits of PIPEDA?

PIPEDA provides individuals with a right to:

  • Access their personal information
  • Challenge and correct the accuracy of any personal information
  • Understand who is collecting their personal information and why they are doing so

Additionally, individuals have the right to expect that their personal information is handled in a timely and appropriate manner and safeguarded using appropriate security measures.

These rights are particularly important when collecting personal information, ensuring organizations rely on fair and lawful means and clearly defined purposes.

PIPEDA applies to any private sector businesses and organizations across Canada that process or disclose personal information for the purposes of commercial activity. This includes how private sector organizations collect, store, and manage all the personal information tied to an identifiable individual, including employee personal information and business contact information in some contexts.

PIPEDA also applies to non-Canadian organizations that collect and utilize personal information on behalf of Canadian citizens, particularly in cases involving interprovincial or international transfers of data across provincial or national borders.

PIPEDA does not apply in Alberta, British Columbia, and Québec. These provinces have their own privacy legislation in place which is substantially similar to PIPEDA. These provincial laws are considered “deemed substantially similar” and operate alongside federal requirements, ensuring alignment with broader Canadian data privacy expectations.

What Is Common between PIPEDA and HIPAA?

There are many shared synergies between the rules of PIPEDA and the legislation of Health Insurance Portability and Accountability Act (HIPAA)-Compliance. Both frameworks emphasize safeguarding personal health information and enforcing strict controls around how organizations collect, use, or disclose sensitive data. In this article, we will discuss if HIPAA-Compliant hosting is compatible with the PIPEDA legislature.

Both laws also reinforce personal health information privacy by requiring organizations to implement safeguards and limit access based on necessity.

What Are the Ten PIPEDA Principles?

Businesses and organizations that are governed by PIPEDA must comply with the legislation’s ten fair information principles:

  1. Accountability – an organization must take full responsibility for the personal data that they store and process
  2. Identifying Purposes – the organization should confirm its need to collect personal data prior to doing so
  3. Consent – the organization should obtain “meaningful consent” from an individual prior to data collection
  4. Limit Collection – organizations must collect only the minimum amount of data necessary for their purpose
  5. Limit Use, Disclosure, and Retention – data must only be used for its intended and consented purpose
  6. Accuracy – all stored data must be up-to-date, complete, and accurate
  7. Safeguards – adequate security measures must be put in place to maintain the integrity and security of data
  8. Openness – organizations should be transparent about their data collection and handling processes
  9. Individual Access – individuals have the right to view, assess and correct any information that is held about them
  10. Challenging Compliance – individuals also have the right to challenge an organization’s compliance with the ten fair information principles

These ten principles form the foundation of personal information protection and electronic documents compliance, ensuring organizations adopt responsible data handling practices and maintain consumer trust.

They also reinforce that collecting personal information must always be justified, limited, and conducted through fair and lawful means.

How Does PIPEDA Differ From HIPAA?

PIPEDA shares similarities with the United States’ HIPAA regulations. However, there are some key differences between the two legislations:

  • HIPAA governs the use and disclosure of patient data within the United States, while PIPEDA relates to Canadian consumer data
  • While HIPAA relates only to healthcare data, all forms of consumer data, from any industry, are covered under PIPEDA
  • Under PIPEDA law, organizations must obtain consumer consent prior to data collection. HIPAA legislation does not always require a patient’s consent or even their prior knowledge
  • HIPAA violations often lead to harsher penalties than PIPEDA breaches

Importantly, PIPEDA applies broadly to federally regulated organizations and businesses engaged in commercial activity, not just healthcare entities handling personal health information.

This includes certain federal government organizations listed under applicable regulations when they engage in commercial data handling activities.

How Do You Comply with PIPEDA?

As made clear in the first of PIPEDA’s ten fair information principles, each organization must take responsibility for its use of personal information and PIPEDA compliance. Suitable policies and procedures must be established to ensure that consumer data is handled correctly.

Organizations must also ensure compliance by implementing structured data management practices, documenting how personal information is collected, and maintaining clear policies around safeguarding personal information.

While the onus is on an organization to adequately secure data, choosing the right hosting provider will make your compliance journey easier. A good hosting provider will help you to address all ten principles, with their main focus being on implementing the necessary safeguards to protect data.

What Are the Best Practice PIPEDA Hosting Safeguards?

PIPEDA’s hosting safeguards principle does not directly specify what particular security safeguards must be implemented on the hosting infrastructure; instead, the responsibility is placed on the hosting provider to “ensure it adequately protects the personal information in its care as technologies evolve and as new risks emerge.” This includes adopting appropriate security measures that align with modern data privacy expectations and addressing risks such as data breaches, unauthorized access, and misuse of credit records or loan records.

What this means is that the principle of safeguards is core to hosting providers because protective tools must be already implemented on the hosting infrastructure. A security policy must be created that encompasses protections to all digital records, preventing unauthorized alteration or use, access, replication, disclosure, loss, or theft.

Methods of protection are categorized in a similar manner to those enumerated in the Security Rule of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). While HIPAA mandates the need for technical, administrative, and physical safeguards, PIPEDA references technical, organizational, and physical requirements of protection.

Technical Safeguards

These safeguards support responsible data handling and ensure that organizations collect, use, or disclose personal information strictly within defined and lawful purposes.

Fully Managed Firewall

Offering a combination of hardware and software-managed firewalls, your network will be secured against unauthorized access and intrusion. For the protection of web servers, an organization may also consider introducing a robust Web Application Firewall (WAF) as part of Atlantic.Net’s Network Edge Protection. Additional managed services can be leveraged to create an Intrusion Prevention Service (IPS), perfect for PIPEDA, as this intelligent service scans network traffic already accepted by the firewall, looking for unexpected trends in behavior and automatically logging any incidents. This automated service provides 24×7 protection at the network layer.

Encrypted Offsite Backups

With data protection of utmost importance, Atlantic.Net offers fully automated onsite and offsite backups with additional replication services. These options can be tailored to meet the specific needs of your organization and can be enabled simply by ticking a checkbox on our Cloud Platform.

Disaster Recovery Services

One of the key elements of PIPEDA is to ensure that members of the public have the right to view and amend any personal information held on them, an extra managed service offered by Atlantic.Net is a managed DR Service, production workloads can be failed over to a secondary location in the event of a major outage at the primary location. Only this month, a data center in Strasbourg (Europe) burnt down, emphasizing the importance of disaster recovery capabilities.

Encrypted VPN and Storage

To comply with PIPEDA laws, an organization should employ suitable encryption methods to ensure the integrity of their collected and stored data. Atlantic.Net does this in two ways – we encrypt VPN traffic (either site-to-site or remote access) and we encrypt all of our storage platforms with a minimum of AES256 security ciphers.

Multi-Factor Authentication (MFA)

In today’s climate, protecting data against loss, theft and unauthorized use is paramount. PIPEDA regulations declare that an organization must take “reasonable” measures to protect the integrity of personal data. Implementing MFA into your infrastructure can negate the risk of compromised credentials. MFA is relatively easy to set up, but it is incredibly effective at protecting servers containing data subject to PIPEDA. If a server is compromised, MFA will prevent the hacker from moving sidewards around your network, if indeed they can compromise a server to start with. Providing servers are secured appropriately, this is very unlikely.

SSL Certificates

Ensuring your site is secured with TLS/SSL certificates will ensure that the user experience is exactly as intended and that data is encrypted, so no snooping of confidential data is possible. Any websites must be transitioned from HTTP to the secure HTTPS protocol. This protocol encrypts all data that is in motion between the client device and the server.

Web designers should know how to install SSL certificates, but you can always work with Atlantic.Net on SSL-encrypting your site since it involves a (relatively simple) server installation.

Physical Safeguards

The Physical safeguards refer to how real-life physical controls are implemented to protect servers and end-user devices. Physical safeguards are essential to protect personal information collected and stored on devices, ensuring only authorized personnel can access sensitive systems.

Facility Access Controls

Physical access data centers hosting electronic information systems should be limited. Any access must be properly authorized and should be regularly audited. Data Centers should have 24×7 security personnel on-site and local/remote CCTV cameras, and preferably a nondescript secure compound.

Workstation Use and Security

Workstations typically include electronic computing devices like desktops or laptops, but the definition can also be extended to devices like smartphones and tablets that can function similarly and store electronic media. Workstations should be protected by adequate physical safeguards that restrict access to PIPEDA information to authorized users

Device and Media Controls

This refers to how you control the receipt, removal, and movement of any hardware or electronic media that might hold PIPEDA information out of and within a data center location.

What Are the Third-Party and Hosting Specific Guidelines for PIPEDA?

Similar to the business associates agreement (BAA) requirement for HIPAA compliance within the US healthcare industry, PIPEDA mandates that you must maintain responsibility for all data whenever it is transferred to or handled by a third party.

Organizations must verify that third parties follow responsible data handling and maintain adequate protections, especially when handling personal health information or sensitive business address records.

The rules are not quite as strict as HIPAA’s BAA, which requires a contract. PIPEDA requires that each organization using a third party must check that data protections are properly in place via “contractual or other means.”

Any organization using a cloud provider or hosting service should verify that the system maintains the strictures of PIPEDA compliance – particularly paying attention to the contract language that addresses handling personal data.

What Is the 2018 PIPEDA Update?

Since its original enactment, PIPEDA has mandated that every company operating in Canada must have implemented a data protection program. On November 1, 2018, the data security rules within PIPEDA were updated, mandating further due diligence and enhancing the strictness of the rules. Modern enforcement continues to emphasize breach accountability, requiring organizations to notify affected individuals and report data breaches where there is a real risk of significant harm.

Companies are now required to control and manage all data that is in their systems and to place appropriate access restrictions on systems to reasonably safeguard them. Organizations that handle Canadian citizens’ data, both domestic and foreign, will now need to perform the following new tasks:

  • Send out notices to impacted users of any privacy breach that carries with it a “real risk of significant harm to an individual,” such as financial loss
  • Report any privacy compromises to Canada’s Office of the Privacy Commissioner
  • Maintain records of any privacy breaches

Cloud guidelines from the Office of the Privacy Commissioner were updated on December 14. These guidelines are specific to the cloud; however, they translate well to relationships with any hosting provider. The FAQs state that PIPEDA “does not prohibit cloud computing, even when the cloud provider is in another country.” However, organizations must ensure compliance with provincial privacy laws and ensure data transfers across provincial or national borders maintain equivalent protections. You can use the cloud then – that is very clear. The parameters beyond that are as follows:

  • Make sure you get consent from each person
  • Protect any data that you gather
  • Make sure you collect personal data for appropriate purposes
  • Restrict gathering of personal data to your stated purposes
  • Make those purposes available to your users
  • Make your privacy practices known to users

How Can Atlantic.Net Ensure PIPEDA Compliance?

As a HIPAA-compliant hosting provider, Atlantic.Net can help to ensure that your organization meets, and even exceeds, PIPEDA requirements by providing the necessary technical and physical safeguards for your hosting environment. By supporting secure data handling practices and aligning with personal information protection act standards, organizations can confidently manage sensitive data while maintaining compliance with evolving privacy laws. Atlantic.Net has a data center presence in Canada, and we already provide compliancy hosting from that location for healthcare organizations.

With over 30 years of experience, Atlantic.Net is independently certified and audited by third-party compliance firms. Our fully compliant hosting solutions meet HIPAA, HITECH, PCI, GDPR, and SOC requirements. Get in touch to find out how Atlantic.Net can help you to meet PIPEDA compliance.