Federal (Canada)Privacy ActWell-founded

Canada Post’s collection and use of personal information for marketing purposes not compliant with the Act

Organization: Canada PostComplainant: Anonymous applicant
Plain-language brief

An individual complained that Canada Post (CPC) was using personal information gathered from the outside of delivered envelopes and parcels to create mail marketing lists, which it then rented to the private sector. The Office of the Privacy Commissioner (OPC) investigated whether CPC's Smartmail Marketing Program (SMM Program) complied with the Privacy Act. The OPC found that CPC's collection of personal information for the SMM Program was directly related to an operating program (s.4) and that its use and disclosure were for an original purpose of collection (s.7 and s.8), thus compliant with these sections. However, the OPC determined that the SMM Program constituted an "administrative purpose" under the Act, and CPC had failed to obtain individuals' authorization for the indirect collection of their personal information, contravening section 5. CPC disagreed with this finding and refused to implement the OPC's recommendation to cease the practice without authorization, proposing only enhanced transparency measures which the OPC deemed insufficient. Consequently, the complaint was found to be well-founded and not resolved.

Key issues
  1. 1Whether Canada Post's collection of personal information for marketing mail list services complies with section 4 of the Privacy Act (related directly to an operating program or activity).
  2. 2Whether Canada Post's use and disclosure of personal information for marketing mail list services complies with sections 7 and 8 of the Privacy Act (for the purpose obtained or consistent use, or with consent).
  3. 3Whether Canada Post's collection of personal information for marketing mail list services complies with section 5 of the Privacy Act (direct collection for administrative purpose, or with authorization).
  4. 4Whether the use of an individual's information to provide mail marketing services constitutes an "administrative purpose" under section 3 of the Privacy Act.
  5. 5Whether individuals implicitly authorized Canada Post to indirectly collect their personal information for the SMM Program by accepting mail delivery or through the availability of an opt-out mechanism.
  6. 6Whether the exceptions under subsection 5(3) of the Privacy Act apply.
Outcome breakdownFavours: Both, in part
  • Collection of personal information: Collection found directly related to operating program
  • Use of personal information: Use found for original purpose of collection
  • Disclosure of personal information: Disclosure found for original purpose of collection
  • Authorization for indirect collection: Failure to obtain authorization for indirect collection found
  • Compliance with s.5: Contravention of s.5 found
  • Complaint resolution: Complaint found well-founded and not resolved
Outcome

Complaint well-founded and not resolved

Reasoning

Canada Post's Smartmail Marketing Program contravened section 5 of the Privacy Act by indirectly collecting personal information for an administrative purpose without individuals' authorization, and Canada Post refused to implement the OPC's recommendation to cease this practice.

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Decision notes
Recommended action / remedy

The OPC recommended that Canada Post cease its current practice of using and disclosing personal information leveraged from its operational data for mail marketing activities without seeking authorization from individuals for the indirect collection of their personal information.

Statutes considered
  • s.3 Privacy Act
  • s.4 Privacy Act
  • s.5 Privacy Act
  • s.7 Privacy Act
  • s.8 Privacy Act

This summary is informational only and not legal advice.

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