Addressing privacy issues: New standards set to become law by 2004.

• Author: Contardo, Darren
• Position: Guest Columnist - Brief Article

How many of us are actually comfortable with the thought of giving information out to Web merchants, organizations, and businesses over the Internet? According to multiple sources, under 10 per cent of Internet users are confident giving out personal information.

Fortunately, the federal government is creating standards for electronic commerce which businesses need to follow to ensure success. These standards are in motion to become law by 2004.

People who actually do follow through and share personal information online either do so reluctantly or give false information, which is of little, if any, value.

The Personal Information Protection and Electronic Documents Act (PIPEDA) was the first to become law on May 1, 2001. The act addresses the privacy issue facing today's online community stating that any business found selling personal information about its users without the users' knowledge will be subject to fine.

PIPEDA was developed in three stages:

Stage 1

Federally-regulated private-sector and out-of-province exchanges of personal information:

* Starting on Jan. 1, 2001 the law applies to personal information of clients and employees in the federally regulated private sector such as airlines, banking, broadcasting, interprovincial transportation and telecommunications.

* The law also applies to all organizations that disclose personal information for consideration outside a province or the country.

Stage 2

Health information:

* On Jan. 1, 2002 the law will also apply to personal health information for the organizations and activities already covered in the first stage.

Stage 3

Commercial use of personal information within individual provinces:

* On Jan. 1, 2004 the law will extend to every organization that collects, uses or discloses personal information in the course of a commercial activity within a province, regardless of whether or not the organization is a federally-regulated business.

So how can businesses prevent privacy legislation retaliation from customers? Have a privacy policy in place and terms-of-use statement that can be viewed by each user at anytime. Either your lawyer or a professional information technology company familiar with the process of creating privacy policies can...