Canada: More Changes To Cyber Security Laws On The Horizon?

Last Updated: July 20 2015
Article by Lyndsay A. Wasser and Michael E. Reid

The issue of cyber security has become increasingly topical as more and more business, government and personal interactions occur online. Organizations that routinely collect and store user information, such as credit card or other financial information, have become targets for cyber criminals seeking to breach security measures and access such information. Some of the recent high profile breaches that relate to theft of financial information, like the breach of Target Corporation's systems and subsequent loss of massive amounts of user data in late 2013, are only one facet of cyber attacks. Cyber attacks may also be aimed at healthcare as well as infrastructure such as energy, finance, telecommunications, transportation and water.

With the release of the Federal Budget in April, the Government of Canada (GOC) has recognized these risks and reaffirmed its commitment to promoting cyber security in Canada in both the public and private sectors.

Under the chapter heading of "Protecting Canadians", the GOC outlined various initiatives related to national security and defence, ranging from border protection initiatives to expand simplified entry for low-risk travellers to the National Defence budget for Canadian Armed Forces.

Included in this same section, as part of the broader goal of enhancing national security, the GOC allocated nearly $100 million over the next five years toward protecting the GOC's "essential cyber systems and critical infrastructure against cyber attacks" and supporting "operators of Canada's vital cyber system in addressing cyber security threats".

Government Systems

The Budget includes $58 million for upgrading critical government cyber systems, including Internet network paths and connections. The stated purpose of these upgrades is to ensure that such critical systems can be protected through detecting and repelling infiltration attempts on GOC systems, and also identifying malicious actors.

Private Systems

On the private side of the equation, the GOC has acknowledged that Canadians gain daily advantage from use of online systems and services, and that this increasing reliance on such networked resources makes us "more vulnerable to those who would seek to attack and undermine our digital infrastructure and threaten our national security, economic prosperity and way of life".

The Budget provides that the GOC plans to introduce new legislation which will require operators of "vital cyber systems" to implement security plans, meet "robust" security requirements, and report cyber security incidents to the GOC. This new legislation is currently being called the Protection of Canada's Vital Cyber Systems Act (the "Cyber Act"), which has been in the works for some time, but has yet to be officially introduced.

In order to support the enhancements required of individual operators by the Cyber Act, the Budget provides $36.4 million to provide enhanced support through the development and dissemination of cyber security tools, security information and expertise to implement the new legislation.

Canada's Cyber Security Strategy

These cyber security announcements in the Budget represent implementation of Canada's Cyber Security Strategy, released in 2010, which was built upon the following three pillars:

  • Securing Government systems – The GOC needs to maintain the trust of Canadians with both personal and corporate information.
  • Partnering to secure vital cyber systems outside the federal government – Many (if not most) of the modern advantages that Canadians rely upon originate from private industry.
  • Helping Canadians to be secure online – In addition to infrastructure and systems, public information is key to enable Canadians to protect themselves and their families online.

Protection of Canada's Vital Cyber Systems Act

While the Budget, particularly when read in connection with the Cyber Security Strategy, gives an indication of the principles underlying the Cyber Act, an analysis of the actual impact of the Cyber Act on industry and individual operators will not be possible until the Cyber Act is tabled as a Bill before Parliament.

One crucial issue to be addressed will be the definition of "vital cyber systems". It is likely that the Cyber Act will at least focus on organizations responsible for the Internet-infrastructure in Canada, such as telecommunications companies and Internet service providers. However, the online economy continues to move further into the cloud, with the result that Canadians are becoming more reliant on web and mobile-based services and service businesses are becoming increasingly dependent on various networks to deliver efficient services. Therefore, the GOC may choose to expand the scope of responsibility for cyber security under the Cyber Act beyond the typical infrastructure providers.

However, with Parliament currently adjourned until late September, and an election scheduled to occur October 19, 2015, the future of the Cyber Act is uncertain.

What is certain, is that organizations that have control over sensitive personal information or essential public or private systems would be well-advised to review the state of their cyber security, to determine whether they are vulnerable to threats and/or complying with any applicable legal requirements. For more information on cyber security, please see McMillan's Privacy Basics Issue #4, Cybersecurity.

The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

© McMillan LLP 2015

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Lyndsay A. Wasser
Michael E. Reid
Similar Articles
Relevancy Powered by MondaqAI
Miller Thomson LLP
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Miller Thomson LLP
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions