PIPEDA Compliance Made Simple: A Practical Checklist for Small Businesses in Canada
The no-nonsense guide to handling customer data without losing your mind or your business.
Photo by Vitaly Gariev on Unsplash
Names, email addresses, phone numbers, purchase history, IP addresses, and credit card details. If you store it, PIPEDA cares about it.
What Counts as Personal Information
More than you think.
A first name paired with an email? Personal information. A shipping address? Personal information. That intake form where someone mentioned their dog’s anxiety? Still personal information.
If you collect it, you own the responsibility for protecting it.
When Consent Is Required
Almost always.
You need clear consent before collecting, using, or sharing personal data. Clear means the person understands what they are agreeing to. Hiding it in paragraph seven of your terms does not count.
There are exceptions for things like order processing or payments, but default to asking first.
When PIPEDA Does Not Apply
Some provinces have their own privacy laws: Alberta, British Columbia, and Quebec.
If you operate only inside one of those provinces, check your local rules.
For everyone else, PIPEDA is the standard.
The Checklist: Eight Steps Every Small Business Must Follow
This is the part you bookmark.
1. Get Clear Consent
Ask before you collect anything. Make it obvious what people are agreeing to.
Use plain sentences. “We will use your email to send order updates and occasional promotions. You decide what you receive.”
That is consent.
2. Say What You Collect and Why
Write down what you collect and why you need it. Put it somewhere visible.
You do not need a 40-page privacy policy. You need clarity.
3. Limit Collection to What You Need
Only ask for data you actually plan to use. Everything else is a liability.
4. Protect Customer Data
Use security measures that match the sensitivity of the information.
Encrypted passwords, secure payment processors, two-factor authentication. No customer files floating around in random folders.
5. Provide Access on Request
If someone asks what data you have on them, you must provide it within 30 days.
6. Correct Inaccurate Data
If someone tells you something is wrong, fix it. No drama.
7. Set Retention and Disposal Rules
Decide how long you keep data and delete it when you are done.
Write a simple rule and follow it.
8. Train Staff on Privacy Basics
Everyone who touches customer data needs to understand the basics.
Even if everyone is just you.
Vendors and Third-Party Tools
If a vendor touches customer data, you are still responsible for it.
Your email platform, payment processor, bookkeeping software, and CRM. If they hold data, you need to know how they store it, who can access it, and how long they keep it.
Before using any tool that handles customer data, ask:
• Where is the data stored?
• Who has access to it?
• How long do they keep it?
• What happens if I cancel?
• Do they follow Canadian privacy rules?
If they dodge questions, walk away.
Quick FAQ Based on Real Questions
Do I need a privacy policy?
Yes. If you collect personal information, you must explain what you collect and why.
Is email marketing covered by PIPEDA?
Yes. And CASL also applies, so you are working under two rule sets.
What counts as consent?
Consent is clear, specific, and voluntary. No tricks.
Do I need to report data breaches?
Yes, if the breach creates a real risk of significant harm.
What if I only have five customers?
The rules still apply.
Final Takeaway
Compliance is not about legal jargon. It is about having a repeatable system that respects customer information.
Know what you collect. Ask before you take it. Protect it. Delete it when you are done.
Print this checklist. Walk through each step. Review it once a year.
That is compliance.
Thanks for Reading
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