On January 6, 2025, former Prime Minister of Canada, Justin Trudeau, announced his resignation leading to the prorogation of Canada’s Parliament until March 24, 2025. This procedural move, among other things, effectively terminated all legislative bills that had not received Royal Assent, including wiping two pivotal bills in the digital sphere: Bill C-27: Digital Charter Implementation Act and Bill C-63: Online Harms Act.
Impacted Legislation
Bill C-27: Digital Charter Implementation Act
Bill C-27 proposed new legislation that would have significantly impacted the Canadian privacy law landscape. The omnibus bill – which was a second reiteration of a former bill that had previously failed to pass – sought to, among other things:
- overhaul the Personal Information Protection and Electronic Documents Act (PIPEDA); and
- modernize Canada’s AI framework and introduce the Artificial Intelligence and Data Act (AIDA), which would have established regulations for AI systems used in commercial activities.
Of note, AIDA sought to impose transparency, accountability, and risk management requirements on AI systems, with fines for non-compliance.
Bill C-63: Online Harms Act
Bill C-63 sought to create a regulatory framework for online platforms to regulate the content platforms host, focusing on promoting online safety and mitigating harms (particularly for minors). While not a AI-specific legislation, the bill – if enacted – would have impacted AI-driven content moderation systems by requiring platforms and their AI design frames to implement stricter measures for detecting and removing harmful content, with the potential to influence AI governance in online spaces in Canada.
Consequences of Prorogation
With Parliament prorogued, the above bills have been terminated. To be reconsidered in the new session, these bills would need to be reintroduced, effectively restarting the legislative process as if they never existed. Alternatively, reintroduction of the bills at their previous stage would require the unanimous consent of the House of Commons or the adoption of a motion to that effect. Given the current political climate in Canada, the likelihood of these bills being reinstated in their previous form appears uncertain.
For businesses operating in Canada, this legislative reset introduces a period of uncertainty:
- AI Regulation: The delay in enacting AI legislation means that, for now, there is no proposed federal framework governing AI systems in Canada. Companies utilizing AI technologies should monitor for new legislative initiatives that may impact future operations in Canada.
- Privacy Legislation: Businesses should continue to comply with existing PIPEDA requirements but remain vigilant for future legislative developments that could impact compliance obligations.
Cozen O’Connor Canada will closely monitor the potential revival of these bills in the House of Commons. If you have any questions about this article or if you need assistance navigating AI and privacy regulation in Canada, please feel free to contact Any Obando Ospina of Cozen O’Connor’s Canada Privacy and Technology team.
