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IAPP CIPP-C: What Key Privacy Act Protection is Missing for Government Outsourcing of Personal Data?

The Privacy Commissioner has identified a critical gap in Canada’s Privacy Act related to government outsourcing of work containing personal information to third parties. Learn what key accountability and oversight measure is currently absent from the legislation.

Table of Contents

Question

According to the federal Privacy Commissioner, what protection is missing from the Privacy Act regarding outsourcing of government work that contains personal information?

A. A statement preventing the vendor to whom the information is outsourced to subcontract its processing.
B. A statement granting the Privacy Commissioner the right to issue orders following an investigation into a possible data breach.
C. A statement requiring the government agency to complete a Privacy Impact Assessment (PIA) prior to outsourcing to a third party.
D. A statement indicating that the government institution from which the information is outsourced remains accountable for its security.

Answer

According to the federal Privacy Commissioner, the Privacy Act is missing a statement indicating that the government institution from which personal information is outsourced remains accountable for the security of that data (Option D).

Explanation

When government agencies outsource work to vendors that involves handling citizens’ personal information, the Privacy Act does not explicitly state that the originating government institution maintains responsibility for safeguarding that outsourced data. This is a significant gap, as it could lead to ambiguity around data security accountability.

While the other options represent good privacy practices, they are not the specific protection the Privacy Commissioner has identified as lacking in the current legislation:

A) Preventing subcontracting by the third-party vendor is advisable but not the main issue raised.
B) Granting order-making powers to the Commissioner is a separate legislative debate.
C) Requiring a PIA before outsourcing is prudent but not mandated by the Act.

Therefore, the key protection absent from the Privacy Act is a clear statement that government institutions remain fully accountable for personal data security when outsourcing work to third parties. Addressing this gap would help strengthen oversight of government data handling practices.

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