Privacy and cloud computing.

• Author: Kratz, Martin
• Position: Special Report: Developments in Internet Law

The term 'cloud computing' refers to the provision of services through websites available on the Internet. These services are typically on demand and scalable such that the user can expand her or his use of the services dramatically. Storing picture, emails or materials on the Internet is use of cloud computing.

The services are typically also provided on a per usage basis (a pooled resource or utility model where resources may be shared and pooled) although many consumer-based services may be provided without charge (such as Google's 'Gmail', Facebook's social media service or similar such services) and on terms where the user agrees to accept ads in exchange for the service. Broad network access is typically a feature of such services.

The use of cloud-based services often is at very low cost: the services may be accessible from anywhere an Internet connection is available and, therefore, the services provide many benefits.

The May 2010 Report of the Office of the Privacy Commissioner of Canada's Consultations on Online Tracking, Profiling and Targeting, and Cloud Computing states:

Some of the benefits to users (businesses, especially small and medium-sized enterprises, governments and individuals) include scalability (offers unlimited processing and storage capacity), reliability (eliminates the concern of losing valuable data in paper format or via the loss of laptops or hard drives; enables access to applications and documents anywhere in the world via the Internet), cost savings, efficiency (frees up resources to focus on innovation and product development) and access to new technologies. Some ... noted that since cloud users do not have to invest in information technology infrastructure, purchase hardware or buy software licences, the benefits are low up-front costs, rapid return on investment, rapid deployment, customization, flexible use and Internet scale solutions that can make use of new web-based innovations. As a result, there has been considerable growth in the provision of cloud-based services and increasingly users are saving their personal data and information on cloud-based services. In such a case it is useful to review the requirements of mandatory privacy law in addressing cloud computing issues.

In its assessment of Facebook, the Privacy Commissioner of Canada found that users can not opt out of receiving Facebook ads which are provided to all users, but that such a business model was reasonable and was accepted under Personal Information Protection and Electronic Documents Act (PIPEDA). (1)

The Commissioner went on to examine if the advertising...