Quebec Data Protection Law: Doing Business in Jurisdiction

The factor of Doing Business in Jurisdiction is used in determining the law's applicability by considering whether an organization engages in economic activities within Quebec, specifically in the course of carrying on an enterprise.

Text of Relevant Provisions

ARPPIPS Div.1(1):

"1. The object of this Act is to establish, for the exercise of the rights conferred by articles 35 to 40 of the Civil Code concerning the protection of personal information, particular rules with respect to personal information relating to other persons which a person collects, holds, uses or communicates to third persons in the course of carrying on an enterprise within the meaning of article 1525 of the Civil Code."

Original (French):

"1. La présente loi a pour objet d'établir, pour l'exercice des droits conférés par les articles 35 à 40 du Code civil en matière de protection des renseignements personnels, des règles particulières à l'égard des renseignements personnels sur autrui qu'une personne recueille, détient, utilise ou communique à des tiers à l'occasion de l'exploitation d'une entreprise au sens de l'article 1525 du Code civil."

Analysis of Provisions

The Act respecting the protection of personal information in the private sector (ARPPIPS) of Quebec specifies that the law applies to personal information that a person collects, holds, uses, or communicates to third persons "in the course of carrying on an enterprise within the meaning of article 1525 of the Civil Code" (ARPPIPS Div.1(1)). This provision indicates that the law's applicability is based on the presence of economic activities within Quebec.

The reference to article 1525 of the Civil Code is significant as it defines an enterprise as "the carrying on by one or more persons of an organized economic activity, whether or not it is commercial in nature, consisting of producing, administering or alienating property, or providing a service". This broad definition encompasses various forms of economic activities, not limited to commercial enterprises.

Implications

The inclusion of this factor has significant implications for businesses operating in Quebec. Any organization that carries on an economic activity in Quebec, whether it's a commercial business, a non-profit organization providing services, or any other form of organized economic activity, would be subject to the law when handling personal information.

For example:

1. A retail store operating in Quebec would be subject to the law when collecting customer information for loyalty programs.
2. A consulting firm providing services in Quebec would need to comply with the law when handling client data.
3. A non-profit organization in Quebec offering services to the public would be subject to the law when managing member or beneficiary information.

Conversely, an organization that does not carry on any economic activity in Quebec would not be subject to the law, even if it processes personal information of Quebec residents. However, it's important to note that the law does not specify whether the enterprise needs to be physically located in Quebec, which could potentially extend the law's reach to businesses operating remotely in the province.