Complete Guide on Data Protection in Quebec: A Deep Dive into Bill 25

Parallel to global regulations such as the GDPR of the European Union, Quebec introduced Bill 25 to bolster the security of personal information. For Quebec-based businesses, aligning with this law is paramount, not just to avoid sanctions, but also to strengthen their digital reputation.
Table of Contents:

1. Introduction
2. Why is Bill 25 Crucial?
3. Main Obligations of Bill 25
4. Implications of Bill 25 for Businesses
5. The Need for Compliance
6. Opportunities for Businesses
7. Expertise of the Commissionnaires of Quebec

Bill 25, titled "Act to modernize legislative provisions respecting the protection of personal information", stems from Quebec's desire to harmonize with other Canadian provinces regarding data security. It sets out clear guidelines for handling personal information, ranging from its collection to its destruction. The goal is to ensure that businesses deploy robust cybersecurity strategies while respecting citizens' rights.
The statistics from 2022 are telling: 60% of Canadian businesses were targeted by ransomware attacks, with a loss exceeding 650,000 data records in the third quarter of that year. The costs induced by these data breaches propelled Canada to the third position globally, with losses amounting to 5.6 million US dollars.

With a cyberattack every 39 seconds, the digital world is constantly under threat. Small businesses, in particular, are vulnerable, making up 43% of the targets. An even more alarming figure is that 60% of them shut down within 6 months following a cyberattack.
Bill 25 aims to:

• Enhance security: Setting strict rules for data management.
• Hold businesses accountable: Mandating the implementation of internal policies and procedures and the appointment of a personal information protection officer.
• Promote transparency: Highlighting the need for informed consent from individuals.
• Align with international standards: Facilitating cross-border commercial exchanges.

• Appointment of a personal information protection officer: Every business must have an individual dedicated to compliance with Bill 25.
• Impact assessments: Before any major initiative, a privacy-related factors assessment must be carried out.
• Consent of individuals: Explicit consent is required for any action on personal information, where consent hasn't already been provided.
• Right of access and correction: Individuals can access, request corrections, or request the destruction of their personal information, subject to exceptions provided by law.
• Incident reporting: A log of security incidents must be maintained and any major incident reported to the Quebec Access to Information Commission.
• Security measures: The protection of personal information is the responsibility of businesses and must be adapted to the level of sensitivity of the information.
• Liability during outsourcing: The primary business remains liable even if a third party processes the personal information.

The security of personal information has become a central issue for businesses, yet many of them seem to still be overwhelmed by the magnitude of the challenges this represents.

According to a study by the Fédération des chambres de commerce du Québec (FCCQ) in June 2022, 40% of companies do not fully grasp the scope of this law on their activities. Only 35% believe they are completely in line with its requirements. Moreover, nearly 40% of companies, especially among SMEs, admit to a lack of knowledge about the implications of Bill 25 on their operations. Many of them have not yet developed solid data protection strategies.

Bill 25 creates new responsibilities for Quebec companies in terms of personal information protection and cybersecurity. Compliance with this law is imperative, at the risk of incurring financial penalties, repercussions on the company's image, and legal complications.

For smooth navigation in this regulatory framework, it is crucial to master the key elements of Bill 25. Here are essential steps to ensure compliance:

• Deep knowledge of Bill 25: It is essential for companies to immerse themselves in the obligations of Bill 25. They may need to potentially adapt their methods of collecting, storing, using, and sharing personal information.
• Priority to cybersecurity: Defending personal information requires constant investments in technology, processes, and cybersecurity training. Regular threat assessment is crucial.
• Employee training: Employees are on the front line for data protection. Awareness and training programs are essential to inform them of their cybersecurity obligations.
• Management of third parties: Partners and suppliers must also comply with Bill 25. This may mean revising contracts to integrate guarantees for the protection of personal information.
• Monitoring and incident response: It is essential to implement detection tools and response mechanisms for potential security breaches, informing the concerned parties in accordance with Bill 25.

Ignoring Bill 25 is costly for businesses. Fines, financial penalties, and damages are determined by the severity of the offenses. Here's an overview:

• Criminal penalties: The CAI can sanction you for violations. Fines can reach up to 25 million dollars or 4% of global turnover.
• Administrative sanctions: The Commission d'accès à l'information (CAI) can impose financial penalties for non-compliance. If recidivism, the company may incur criminal penalties, with fines that can reach 10 million dollars or 2% of global turnover.
• Financial reparations: In case of rights infringement, compensation depends on the damage caused. In case of serious fault, punitive damages start at $1,000.

These strict consequences highlight the importance of complying with Bill 25, not only to protect individual rights but also to avoid devastating consequences.

By prioritizing the protection of personal information, businesses can:

• Be recognized for their commitment to digital rights.
• Offer services focused on privacy.
• Build trust and retain their customers.

The requirements of Bill 25 go beyond simple cybersecurity. It is crucial to benefit from expert advice covering legal, technical, and organizational domains.

With its legacy in security matters, Commissionnaires du Québec is the ideal partner in this regulatory era. Our multidisciplinary team is here to assist you in transitioning to compliance. Here are our services:

• Risk Analysis: We detect weaknesses and propose solutions.
• Cybersecurity Consultation: We strengthen your security measures.
• Training: Your teams will be trained on the requirements of Bill 25.
• Active Monitoring: We ensure your continuous compliance.

Conclusion

Complying with Law 25 is essential for any business in the digital age. Commissionnaires du Québec is your ally in achieving compliance and more.