Sale of business to proceed under the cover of a PIPEDA exemption order

5 May

On April 26th the Ontario Superior Court of Justice issued an order under section 7(3)(c) of the Personal Information Protection and Electronic Documents Act to allow to credit unions to merge without gaining the express consent of members. It’s not clear that such an order is actually authorized by PIPEDA (and the applicants don’t appear to have given notice to members), but Justice Lauwers listed a number of Ontario commercial list matters in which such permissive orders have been made. He echoed comments made by Justice Farley in “urging that a route be provided that will permit the disclosure of the necessary personal information in such circumstances as these to avoid wasting the court’s time and the parties’ funds.” Bill C-12 received first reading way back last September and will add a “business transaction” exemption to PIPEDA. Its time is obviously overdue!

In the Matter of an Application Under Rules 14.05(3)(d), 2012 ONSC 2530 (CanLII).

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