Canada at a Privacy Crossroads: What Legal Professionals Should Watch for Post-Bill C-27

As Canada’s digital economy continues to evolve, privacy law is entering a critical period of transition. With the collapse of Bill C-27 in 2024, early 2025 has left legal professionals navigating a fragmented and uncertain regulatory landscape. Without a modernized federal privacy framework or AI-specific legislation, the burden now shifts to provinces, regulators, and the courts to fill the gap.

1. The Collapse of Bill C-27: A Legislative Vacuum

Bill C-27 was designed to overhaul Canada’s federal privacy regime by introducing the Consumer Privacy Protection Act (CPPA) and the Artificial Intelligence and Data Act (AIDA). Its failure to pass has left the outdated Personal Information Protection and Electronic Documents Act (PIPEDA) in place, with no clear roadmap for regulating AI or modern data practices.

What to watch:

• Provincial leadership: Québec’s Law 25 is already reshaping compliance expectations, and Ontario is actively exploring its own privacy and AI frameworks. Legal professionals should monitor how these laws evolve and interact.
• Sector-specific guidance: In the absence of federal legislation, regulators may issue targeted guidance for industries like healthcare, finance, and advertising.
• Global alignment: Without CPPA, Canada’s adequacy status under the EU’s GDPR could be jeopardized, affecting international data transfers and business operations.
  
  

2. Strategic Considerations for Legal Counsel

Legal professionals advising clients in data-driven sectors should take proactive steps to prepare for a shifting regulatory environment:

• Audit and future-proof data practices: Ensure that current data collection, processing, and retention policies are adaptable to new provincial or federal requirements.
• Track provincial developments: Stay informed about emerging legislation and regulatory consultations in key provinces.
• Plan for patchwork compliance: Develop scalable compliance strategies that can accommodate jurisdictional differences.
• Engage in policy development: Participate in consultations and industry associations to help shape the next generation of privacy and AI laws.
  
  

Conclusion:
The failure of Bill C-27 has created both uncertainty and opportunity. Legal professionals have a critical role to play in guiding clients through this transitional period—ensuring compliance today while preparing for the regulatory frameworks of tomorrow.

To learn more, click here for on-demand access to our July 2025 featured webinar on Navigating AI & Privacy Law in Canada conversation, with subject matter experts Danielle Miller Olofsson and Timothy M. Banks. This jam-packed, 1 hour conversation provides insight to Canada’s evolving AI and privacy law landscape, including what’s enforceable now and what’s on the horizon. To conclude, we provide thoughts on advising clients or organizations on compliance, risk, and ethical AI use in the fragmented regulatory environment.