With over a decade of experience in executing digital transformation projects for leading Quebec companies, I’ve observed that Law 25, pertaining to the protection of personal information, marks a significant shift in the business landscape. This legislation, which encompasses nearly all enterprises in Quebec, not only introduces unprecedented standards for data management but also imposes unparalleled sanctions, presenting paramount strategic challenges for market players.

Law 25’s Objectives:

With the digital transformation shift underway for many years within most businesses, the amount of digital data collected, generated, and stored by these organizations has grown exponentially. Among this data, not only are there confidential details related to the companies’ internal operations and intellectual property, but also data that identifies individuals, classifying them as “personal information” under Law 25.

This legislation emerges as a response to growing concerns about privacy and data security in the digital age. It demands strict compliance from businesses concerning the collection, use, retention, and security of personal information. This compliance requirement can pose a significant challenge for many organizations, requiring a thorough review of their data management practices and establishing robust privacy protection mechanisms. Ultimately, Law 25 seeks to foster greater public trust in how data is managed in the ever-evolving digital environment.

Key facets of this legislation include:

• Informed Consent: Businesses must obtain explicit consent from individuals before collecting, using, or disclosing their personal information. This consent must be clear and understandable.

• Data Management: Organizations must implement data management policies and procedures to ensure the security and confidentiality of personal information.

• Individual Rights: Individuals have the right to access their personal data, correct it, or delete it if necessary. They also have the right to know how their data is used.

• Breach Notification: Businesses are obligated to inform the appropriate authorities and the affected individuals in the event of a data breach.

• Accountability: Companies are responsible for protecting personal information.

Implementation Phases:

Law 25 is implemented in different stages, and thus allows companies to organize themselves and put in place the measures necessary for their compliance.

Stage 1 – September 2022:

• Appointment of a data protection officer: Ensuring responsibility and expertise in personal data management and safeguarding.

• Mandatory reporting of confidentiality breaches to the Quebec Access to Information Commission (CAI): Transparency for stakeholders, reinforcing commitment to information protection.

Stage 2 – September 2023:

• Establishment of a governance framework for data protection: Guided and structured directives for consistent personal data protection within the organization.

• Enhanced transparency during data collection: Ensuring individuals clearly understand what data is being collected, its purpose, and its use.

• Data destruction or anonymization in specific scenarios: Protecting individual rights by deleting or anonymizing data when no longer required.

• Privacy risk assessment: Proactively identifying and mitigating potential risks to personal data.

• Consent required for marketing purposes: Respecting individual choices and ensuring marketing approaches are desired and not intrusive.

Stage 3 – September 2024:

• Right of individuals to request their data provided to a business: Giving individuals access to and control over their own information.

• Penalties for non-compliance: The Access to Information Commission has the power to impose penalties for non-compliance up to $25M or 4% of global turnover.

Next Steps?

Here’s an overview of steps an organization should undertake to comply with Law 25:

Awareness & Education: Ensure that key decision-makers and staff in your organization are aware of the privacy regulations that apply to them and understand the importance of compliance.

Evaluation & Audit: Conduct a data audit to identify personal data you hold, its source, and with whom you share it. Additionally, evaluate the procedures and processes currently in place to manage this data.

Policies & Procedures: Establish clear personal data protection policies and procedures that reflect your data processing practices and comply with Law 25.

Appoint a Personal Information Management Officer: As per phase 1 of Law 25, effective from September 2022, every organization must appoint a dedicated officer to oversee Law 25 implementation and ensure compliance.

Consent Management: Ensure that when you collect personal data, you have clear, specific, informed consent from individuals. Review your consent mechanisms to ensure they are clear, opt-in, and that you can prove you’ve obtained consent.

Individual Rights: Ensure you can respect individual rights (e.g., access, rectification, erasure). This may involve setting up mechanisms to delete user data upon request or provide them with data you hold on them.

Data Breaches: Establish a protocol and the required technological tools to detect, report, and investigate personal data breaches.

International Data Flows: If you transfer personal data outside the jurisdiction of the specific privacy law, ensure you have a legal basis to do so and that data is protected according to regulatory requirements.

Data Minimization and Retention: Only collect and retain personal data that is necessary for your objectives, and only keep it as long as required.

Privacy “By Design”: Integrate data protection measures into your product and service design processes. Ensure data protection is part of your organization’s culture.

Regular Reviews & Training: Regularly review and update your data protection policies and procedures. Train staff members to understand their responsibilities.

Third Party Management: Ensure your vendors, providers, or any third party with whom you share data comply with Law 25 regulations. This often involves having data processing agreements in place.

Documentation: Keep detailed records of all data processing activities, decisions, access, breaches, and consent mechanisms.

Stay Informed: Regulation may change, and new interpretations can emerge. Regularly review the specific requirements of Law 25. Likewise, continuously adapt and update your protection mechanisms to remain effective against constantly evolving threats.

In conclusion, Law 25 is a significant initiative in the Quebec regulatory landscape, reflecting the recognition of the importance of personal data protection in the digital age. It underscores the need for organizations to rethink and adapt their data practices, not just for regulatory compliance but also to foster renewed trust with customers and partners. Complying with this law isn’t merely a legal obligation but also an ethical journey and an opportunity to showcase a commitment to responsibility and transparency. Companies that take the lead, not just in compliance but in adopting a privacy-centric culture, will be better positioned to thrive in this new regulatory and digital environment. The path to compliance may seem complex, but with methodical planning, proper awareness, and proactive action, businesses can not only comply but also leverage their commitment to personal data protection as a significant strategic asset.