In early 2025, the House of Commons of Canada began considering Bill C-47, which aims to modernize citizens’ rights in the digital space. The initiative, developed by the Ministry of Innovation, Science, and Industry, proposes introducing new regulations regarding data privacy, algorithmic transparency, and the right to digital self-determination.
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The bill establishes a single federal data protection standard, replacing the outdated Private Sector Personal Information Protection Act (PIPEDA), which has been in effect since 2000. The new regime will require companies to notify users of the purposes for which they collect data, obtain their consent in an understandable manner, and provide access to their digital information upon request.
Particular attention is paid to artificial intelligence. Organizations using automated decision-making systems (for example, in lending or hiring) will be required to explain the data and logic underlying their algorithms. This provision was developed in accordance with the recommendations of the Government of Canada’s AI Ethics Commission.
Bill C-47 also proposes the creation of an independent body—the Digital Regulator of Canada—with powers to investigate violations, impose fines (up to 5% of a company’s annual revenue), and issue orders. The regulator is expected to begin operations in 2026 if the bill is passed.
Government parties have expressed support for the initiative, but the opposition (represented by the Conservative Party and the Bloc Québécois) has proposed amendments to ease requirements for small businesses and clarify the definition of “sensitive data.” Discussions are ongoing in the Industry and Technology Committee.