One business wants to buy the assets of another business. Assume
that the consent obtained to the collection, use and disclosure of
personal information from the customers of the seller did not
include consent to disclose personal information on the sale of the
assets of the credit union. What to do?
In a recent case, the Ontario Superior Court of Justice granted an
order that the seller could disclose all personal information
in its possession in order to complete and implement the purchase
and sale transaction. The court further ordered that the purchaser
was entitled to continue to use the personal information provided
to it in a manner identical to the prior use by the seller.
The court made the order pursuant to section 7(3)(c) of the
Personal Information Protection and Electronic Documents
Act, 2000, c. 5 ("PIPEDA") which states that
disclosure may be made without consent in order to comply with an
Justice P.D. Lauwers stated that he joined in "urging that
a route be provided that will permit the disclosure of the
necessary personal information in such circumstances as these to
avoid wasting the court's time and the parties'
Unlike the Alberta Personal Information Protection Act
and the British Columbia Personal Information Protection
Act, PIPEDA does not have a scheme to facilitate transfers of
personal information in the course of completing the sale of a
About Fraser Milner Casgrain LLP (FMC)
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located in the country's key business centres. We focus on
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of where you choose to do business in Canada, our strong team of
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