Privacy commissioner says TikTok wind up has no impact on investigation as company takes government to court

As TikTok Technology Canada, Inc. challenges the government’s order that it close its business operations in Canada, privacy commissioner Philippe Dufresne told the House privacy and ethics committee that the order will not impact his office’s ongoing investigation into the company. In February 2023, with fellow privacy protection authorities from Quebec, British Columbia, and Alberta, the federal Office of the Privacy Commissioner (OPC) launched an investigation into TikTok’s privacy practices. According to a press release from the OPC, the ByteDance Ltd. subsidiary was under scrutiny after a number of now-settled class action lawsuits in both the United States and Canada, spurring the four privacy regulators to examine whether the company is in compliance with Canadian law. “Given the importance of protecting children’s privacy, the joint investigation will have a particular focus on TikTok’s privacy practices as they relate to younger users, including whether the company obtained valid and meaningful consent from these users for the collection, use, and disclosure of their personal information,” said the OPC at the time. Last month, Minister of Innovation, Science, and Industry François-Philippe Champagne announced that the federal government is ordering the “wind up” of TikTok’s Canadian business operations, citing concerns of national security risks. Lawmakers expressed concerns during the ethics committee’s Tuesday meeting that the order would complicate the privacy commissioner’s investigation, but Dufresne assured MPs that the order does not impact his office’s plans. “The government's decision to order the wind up of does not impact my authority to investigate,” said the privacy watchdog in his remarks. “We are nearing the end of this investigation and my goal is to have it concluded in the next few months.” Privacy Commissioner of Canada Philippe Dufresne holds a press conference in Ottawa on Jan. 26, 2023. Dufresne did note, however, that complications could arise if he were to find TikTok is in violation of Canadian privacy law and sought to impose conditions on the company. It is not necessary for an organization to have its offices in Canada for privacy laws to apply, said Dufresne. “We have jurisdiction to seek a court order from Canadian courts,” explained Dufresne, but “where the issue could come up is in terms of enforcing it.” If all the assets of a company are in another country, “then it becomes an issue of private international law,” he said, explaining that Canadian courts will have to try and make its orders recognized by courts in other jurisdictions. The privacy commissioner emphasized how long it can take for such issues to be dealt with through the court, repeating his previous calls for the government to grant his office with order-making powers. READ MORE: – Ethics committee calls for privacy law improvements, more oversight of social media platforms TikTok Technology Canada followed through on its plans to challenge the government’s order and filed an application for judicial review with the Federal Court of Canada on Dec. 5. The company alleges the government's actions were unreasonable and procedurally unfair. “The will result in the termination of hundreds of employees in Canada and the potential termination of over 250,000 contracts with Canadian-based advertisers. In addition, the will cause the destruction of significant economic opportunities and intangible benefits to Canadian creators, artists, and businesses, and the Canadian cultural community more broadly,” TikTok alleges in its court filing. The company alleges that Innovation, Science and Economic Development Canada (ISED), led by Champagne, committed an error of law and breached TikTok’s rights to procedural fairness by, “among other things, failing to substantively engage in the course of the , abruptly concluding the , and depriving TikTok Canada of the chance to fully and fairly benefit from its statutory and procedural rights.” “Given the potential grave consequences of the for TikTok Canada, the minister owed TikTok Canada a heightened duty of procedural fairness,” the company alleges. The company argues that there were “less onerous” measures the government could have taken, “including the imposition of terms and conditions…” TikTok alleges that the order calls for “measures that bear no rational connection to the national security risks it identifies,” adding that the minister’s reasoning for the order “was not transparent, intelligible or justified and was therefore unreasonable.” The Wire Report has reached out to ISED for comment on TikTok’s filing. None of the allegations has been tested in court. phalentm@thewirereport.ca

Privacy commissioner says TikTok wind up has no impact on investigation as company takes government to court

Court |
By Phalen Tynes-MacDonald
| December 11, 2024

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Privacy commissioner says TikTok wind up has no impact on investigation as company takes government to court

Court | By Phalen Tynes-MacDonald | December 11, 2024

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Court |
By Phalen Tynes-MacDonald
| December 11, 2024