Canada (PIPEDA & Law 25)

PIPEDA & Law 25 (Canada Privacy Laws)

What are PIPEDA and Law 25?

Canada’s data privacy framework is primarily governed by PIPEDA (Personal Information Protection and Electronic Documents Act) at the federal level, alongside Law 25 (formerly Bill 64), which applies specifically to Quebec.

For Shopify merchants, these laws regulate how personal data of Canadian customers is collected, used, and disclosed. While PIPEDA establishes general privacy principles across Canada, Law 25 introduces stricter requirements, particularly around consent, transparency, and accountability.

These laws apply if your store:

• Sells to customers in Canada
• Collects personal data such as names, emails, IP addresses, or order details
• Uses cookies, analytics tools, or advertising technologies

In practice, merchants must ensure meaningful consent, clear disclosures, and responsible data handling.

Key Requirements for Shopify Merchants

Both PIPEDA and Law 25 are principle-based laws, but several requirements are especially relevant for ecommerce:

• Meaningful Consent
  Users must understand what they are agreeing to. Consent must be clear, informed, and tied to specific purposes.
• Transparency and Disclosure
  Merchants must explain what data is collected, how it is used, and whether it is shared with third parties.
• Limiting Data Collection
  Only data necessary for the stated purpose can be collected.
• User Rights (Access and Correction)
  Customers have the right to access their data and request corrections.
• Accountability and Data Governance (Law 25)
  Businesses must designate responsibility for data protection and implement internal policies.
• Stronger Consent for Sensitive Data (Law 25)
  Explicit consent is required in more scenarios, particularly when using tracking technologies.

Risk of Non-Compliance

Canadian privacy enforcement has become stricter, especially with the introduction of Law 25 in Quebec.

Potential consequences include:

• Fines up to CAD $25 million or 4% of global turnover under Law 25
• Investigations by Canadian privacy regulators
• Legal complaints from users
• Loss of customer trust in a privacy-conscious market

For Shopify merchants, improper use of cookies or unclear consent mechanisms is one of the most common compliance gaps.

How Consentmo Helps Shopify Merchants Stay Compliant

Consentmo helps merchants meet both PIPEDA and Law 25 requirements by providing clear consent mechanisms and transparent data practices.

• Clear and Granular Consent Collection
  The cookie banner allows users to make informed choices about different categories of cookies, supporting meaningful consent requirements.
• Transparent Cookie and Data Disclosures
  Users are informed about what data is collected and for what purpose, aligning with transparency obligations.
• Consent-Based Script Control
  Tracking technologies (analytics, marketing) are only activated after user consent, reducing compliance risk.
• Privacy Request Pages
  Enables users to request access to or correction of their data, supporting user rights under PIPEDA and Law 25.
• Consent Logging and Record Keeping
  Stores consent decisions as proof of compliance and accountability.
• Smart Geotargeting
  Applies appropriate consent behavior for Canadian visitors without affecting other regions.

Canada Compliance for Shopify: What to Keep in Mind

Unlike stricter opt-in frameworks like GDPR, Canadian laws focus on meaningful and informed consent, but enforcement trends are moving toward stricter expectations—especially in Quebec.

To stay compliant over time, merchants should ensure that:

• Consent language is clear and easy to understand
• All tracking tools are disclosed before activation
• Privacy policies reflect actual data practices
• User requests for access or correction can be handled efficiently

As your store grows and adds new integrations, maintaining transparency becomes critical.

Summary

PIPEDA and Law 25 require Shopify merchants to handle personal data responsibly, with a strong focus on transparency, accountability, and meaningful consent.

To comply, merchants must:

• Clearly explain data collection and usage
• Obtain informed user consent for tracking technologies
• Allow users to access and correct their data
• Maintain records of consent and data practices

Consentmo simplifies compliance by providing consent collection, transparency tools, and automated controls tailored for Shopify stores operating in Canada.