What Does the Consumer Privacy Protection Act Mean for Microsoft Customers?

The Consumer Privacy Protection Act (CPPA) falls under the umbrella of the Digital Charter Implementation Act (DCIA). DCIA, introduced in June 2022, proposes legislation that intends to increase legal protections for Canadians’ personal information when collected and used for commercial purposes.

CPPA closes a number of privacy gaps that existed in the previous PIPEDA legislation and introduces stricter standards for data governance and control. It also implements a new Personal Information and Data Protection Tribunal that has much greater power to enforce rules and levy fines and other sanctions against organizations that fail to comply.

Although the proposed new rules must still work their way through the legislative process, it is likely that Canadian businesses will need to comply with stricter data protection laws in the next year or two. In this article, we’ll explain the most significant changes proposed by CPPA and how they could affect Microsoft customers that collect and use consumer data.

Under PIPEDA, organizations that contravene data protection laws can be subject to fines of up to $100,000 CAD.

CPPA significantly increases penalties for mishandling personal information. In the proposed legislation, businesses that violate CPPA would automatically be subject to fines of up to $10 million or 3% of their gross global revenue in the previous financial year, whichever is higher. More serious offences could carry fines of up to $25 million or 5% of an organization’s global revenue.

In addition, affected individuals are granted a private right-of-action, meaning they can pursue additional financial relief from the organization that mishandles their data.

Every organization that collects consumer data must develop and maintain its own privacy management program that lays out all procedures and policies that the company has put into place to ensure compliance with CPPA.

Businesses must be able to produce this information upon request. Privacy management programs must also explain how requests for information and complaints will be received and handled and provide details about employee privacy training.

Even organizations with existing compliance policies might find the new rules proposed by the CPPA daunting. However, Microsoft customers have access to the essential tools required to ensure CPPA compliance.

The first step for any business that wants to prepare for the CPPA is to conduct a complete audit of its people, tools, and processes to identify any areas where it falls short of upcoming standards.

Although the Consumer Privacy Protection Act is not yet in effect, there is little doubt that stricter privacy regulations are coming for Canadian businesses. Other regions, like the US and Europe, have already introduced updated privacy legislation — Canada is lagging behind and in the process of catching up. 

Once these rules are implemented, businesses could face fines in excess of $25 million for failing to meet new data compliance standards, plus open themselves up to private lawsuits brought by affected individuals. Simply put, Canadian organizations can’t afford to put off improving their data governance practices. 

For businesses powered by Microsoft, the best place to start is with a Protect & Govern Sensitive Data Workshop. This workshop will assess your organization’s data risks and tell you how your practices measure up against potential CPPA regulations and other key data protection standards. You’ll receive a detailed analysis of your environment and a report on associated risks, plus recommendations and next steps to ensure your organization is fully compliant.