PIPEDA
Canada's federal privacy law for commercial activities
ISO 27701
International standard for privacy information management systems
Quick Verdict
PIPEDA mandates privacy rules for Canadian commercial activities via 10 principles, enforced by OPC. ISO 27701 offers voluntary PIMS certification for global PII management. Companies adopt PIPEDA for legal compliance, ISO 27701 for auditable privacy governance and trust.
PIPEDA
Personal Information Protection and Electronic Documents Act
Key Features
- Mandates designation of accountable Privacy Officer
- Establishes 10 Fair Information Principles framework
- Requires meaningful consent for sensitive data
- Demands proportional safeguards for data sensitivity
- Enforces breach reporting for significant harm risks
ISO 27701
ISO/IEC 27701:2025 Privacy Information Management Systems
Key Features
- Privacy Information Management System (PIMS) framework
- Controller-specific controls in Annex A
- Processor-specific controls in Annex B
- GDPR and privacy law mappings (Annex D)
- Stand-alone certification option (2025 edition)
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
PIPEDA Details
What It Is
PIPEDA (Personal Information Protection and Electronic Documents Act) is Canada's federal privacy regulation governing private-sector organizations in commercial activities. It establishes national standards for collecting, using, disclosing, and protecting personal information, employing a principles-based approach with 10 Fair Information Principles from Schedule 1.
Key Components
- Core: 10 Fair Information Principles (accountability, consent, safeguards, access, etc.).
- Flexible framework for privacy programs, PIAs, breach protocols; no fixed controls.
- OPC enforcement via investigations, audits; no certification but compliance demonstrations.
Why Organizations Use It
- Mandatory compliance avoids fines up to CAD $100,000, court orders.
- Builds trust, mitigates breach risks, supports e-commerce.
- Enables cross-border transfers, competitive edge via transparency.
Implementation Overview
- Phased: gap analysis, governance (Privacy Officer), policies, training, audits.
- Targets commercial ops, federal/cross-border; scales by size.
- Ongoing assurance with PIAs, breach reporting.
ISO 27701 Details
What It Is
ISO/IEC 27701:2025 is the international standard for establishing, implementing, maintaining, and improving a Privacy Information Management System (PIMS). It provides a risk-based framework extending ISO 27001 for managing privacy risks in processing personally identifiable information (PII), applicable to PII controllers and processors.
Key Components
- Clauses 4–10 mirror ISO management systems, with privacy extensions.
- Annex A (controllers) and Annex B (processors) offer ~50 role-specific controls.
- Built on PDCA cycle, with mappings to GDPR (Annex D) and ISO 27002.
- Certification via accredited bodies, 3-year cycle with surveillance audits.
Why Organizations Use It
- Demonstrates accountability for GDPR/POPIA/LGPD compliance.
- Reduces privacy risks, enhances supply-chain trust.
- Provides audit-ready evidence for regulators and procurement.
- Builds competitive advantage through certified privacy governance.
Implementation Overview
- Phased: scope PII flows, gap analysis, controls, audits.
- 6–12 months typical; suits all sizes/industries processing PII.
- Integrated audits if ISO 27001-certified. (178 words)
Key Differences
| Aspect | PIPEDA | ISO 27701 |
|---|---|---|
| Scope | Private-sector personal info in commercial activities | Privacy management system for PII controllers/processors |
| Industry | Canadian private sector, commercial activities | All sectors worldwide handling PII |
| Nature | Mandatory federal privacy law | Voluntary international certification standard |
| Testing | OPC investigations, audits, compliance checks | Third-party certification audits, surveillance |
| Penalties | Fines up to CAD $100k, court orders | Loss of certification, no direct fines |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about PIPEDA and ISO 27701
PIPEDA FAQ
ISO 27701 FAQ
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