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doing business in canada - Davies Ward Phillips & Vineberg LLP

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available <strong>in</strong> French. However, advertisements for products such as cultural or educational products (i.e., books,CDs, etc.) may be exclusively <strong>in</strong> a language other than French, provided that the products themselves are <strong>in</strong> thatother language.Beg<strong>in</strong>n<strong>in</strong>g <strong>in</strong> 2004, Industry Canada <strong>in</strong>stituted an "anti-SPAM action plan" for Canada. SPAM, which is the wordused to refer to unsolicited commercial e-mail, has been estimated as constitut<strong>in</strong>g 86% of all e-mail worldwide.A dra<strong>in</strong> on both <strong>bus<strong>in</strong>ess</strong> and personal productivity, SPAM is a threat to consumer confidence <strong>in</strong> the e-commercemarketplace. The <strong>in</strong>itiative focused largely on us<strong>in</strong>g exist<strong>in</strong>g legislation to combat new forms of Internet-basedabusive advertis<strong>in</strong>g. In particular, the task force exam<strong>in</strong>ed the use of both the Crim<strong>in</strong>al Code and the CA aseffective means of combat<strong>in</strong>g this grow<strong>in</strong>g problem. In December of 2004, a British Columbia company thatused SPAM as part of its advertis<strong>in</strong>g strategy was found guilty of hav<strong>in</strong>g engaged <strong>in</strong> reviewable conduct underthe CA. In addition to agree<strong>in</strong>g to cease mak<strong>in</strong>g false and mislead<strong>in</strong>g claims through its website and SPAM, thecompany agreed to stop us<strong>in</strong>g SPAM for any of its representations to the public.In addition to the CA and the Crim<strong>in</strong>al Code, privacy legislation may also be used to control SPAM. The PrivacyCommissioner recently released a decision <strong>in</strong> which it was decided that a person's workplace e-mail addresswould be considered "personal <strong>in</strong>formation" for the purposes of PIPEDA.The M<strong>in</strong>ister of Industry for the federal government has recently <strong>in</strong>troduced <strong>in</strong> Parliament Bill C-28, the Fight<strong>in</strong>gInternet and Wireless Spam Act (the "FIWSA"). The FIWSA is aimed at protect<strong>in</strong>g consumers and <strong>bus<strong>in</strong>ess</strong>esfrom dangerous forms of spam and regulat<strong>in</strong>g activities that are perceived to discourage the use of electronicmeans of carry<strong>in</strong>g out commercial activities. The FIWSA conta<strong>in</strong>s provisions that prohibit the send<strong>in</strong>g ofcommercial electronic messages without prior consent, the unauthorized <strong>in</strong>stallation of computer programs onanother's computer system, the alter<strong>in</strong>g of transmission data <strong>in</strong> an electronic message, and other activities thatimpact upon electronic commerce. In laymen's terms, the FIWSA is aimed at punish<strong>in</strong>g email orig<strong>in</strong>at<strong>in</strong>g <strong>in</strong>Canada that <strong>in</strong>volves identity theft, phish<strong>in</strong>g, spyware and other forms of fraud. The FIWSA provides for bothadm<strong>in</strong>istrative penalties to be imposed by the CRTC aga<strong>in</strong>st offenders and also civil actions by persons whosuffer damage as a result of violations.DATA PROTECTION AND PRIVACYPIPEDA applies to the collection, use and/or disclosure of personal <strong>in</strong>formation <strong>in</strong> the course of any commercialactivity with<strong>in</strong> Canada. "Personal <strong>in</strong>formation" means <strong>in</strong>formation about an identifiable <strong>in</strong>dividual, but does not<strong>in</strong>clude the name, title or <strong>bus<strong>in</strong>ess</strong> telephone number of an employee of an organization (commonly referred toas "<strong>bus<strong>in</strong>ess</strong> card" <strong>in</strong>formation). A recent decision of the federal Privacy Commissioner concluded that an<strong>in</strong>dividual's <strong>bus<strong>in</strong>ess</strong> email address is also "personal <strong>in</strong>formation" for the purposes of PIPEDA (although thisposition is not without controversy). "Commercial activity" means "any particular transaction, act or conduct orany regular course of conduct that is of a commercial character, <strong>in</strong>clud<strong>in</strong>g the sell<strong>in</strong>g, barter<strong>in</strong>g or leas<strong>in</strong>g ofdonor, membership or other fundrais<strong>in</strong>g lists". Bus<strong>in</strong>esses are required to establish an adm<strong>in</strong>istrative structureto ensure that ten "privacy pr<strong>in</strong>ciples" are implemented: (1) accountability; (2) identification of the purpose forwhich the <strong>in</strong>formation is gathered; (3) consent; (4) limitations on collection; (5) limitations on use, disclosureand retention; (6) accuracy; (7) ensur<strong>in</strong>g appropriate safeguards are <strong>in</strong> place; (8) openness; (9) <strong>in</strong>dividual access;and (10) challeng<strong>in</strong>g compliance. These pr<strong>in</strong>ciples are based on the <strong>in</strong>ternational OECD Guidel<strong>in</strong>es on theProtection of Privacy and Transborder Flows of Personal Data.As a result of the enactment of PIPEDA, private sector <strong>bus<strong>in</strong>ess</strong>es are required to implement privacy policies <strong>in</strong>respect of the collection, use and disclosure of personal <strong>in</strong>formation and to make those policies available to theircustomers. In addition, the legislation requires <strong>bus<strong>in</strong>ess</strong>es to make the <strong>in</strong>formation collected about <strong>in</strong>dividualsavailable to them upon request.Industrial and Intellectual Property 53

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