![Global rules on foreign direct investment](https://www.nortonrosefulbright.com/-/media/images/nrf/nrfweb/knowledge/publications/us_24355_legal-update--fdi-alert.jpeg?w=265&revision=a5124a65-abf9-40e4-8e96-9df39ffdb212&revision=5250068427347387904&hash=96B456347C3246E5649838DF281C5F5D)
Publication
Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Author:
Canada | Publication | August 11, 2021
This is the second in our series of updates about Ontario’s new proposed privacy laws. The Government of Ontario’s June 17, 2021, white paper outlined proposals that aim to:
In this update, we will elaborate on proposals 4 through 7. To read more about proposals 1 through 3, please refer to last week’s update.
Data transparency. The following proposals were put forward to enhance data transparency, which in turn would both protect and empower individuals whose data is at issue:
Data transparency is critical in both empowering and protecting individuals exercising their right to know when and how their data is being used. Only by arming individuals with this knowledge will they be empowered to exercise their rights and make informed decisions about their data. In other words, the Ontario government is seeking to level the playing field as between organizations and individuals, because the complexities of our digital world currently obstruct individuals from having a fair say in how their data is used. This approach is in line with global trends toward giving individuals the tools needed to protect their personal information.
Children and youth. The following proposals were put forward to protect children and youth, some of the most vulnerable stakeholders in Ontario’s digital economy:
There may very well be operational roadblocks to implementing consent mechanisms for minors, but the Ontario government seems of the view that greater regulation is needed, and that organizations should be restricted from profiling these vulnerable individuals (especially over long periods). Absent these restrictions, organizations could exercise what some perceive as too much control over minors’ digital footprints, both today and later in their lives.
Regulatory regime. The following proposals were put forward to establish a more fair, proportionate and supportive regulatory regime:
A more robust regulatory regime is certainly a prerequisite to ensuring adequate oversight and enforcement of the legislative changes proposed. The updated regime hinges on providing the IPC with a more meaningful mandate and stronger enforcement powers, subject to judicial oversight under certain circumstances. Implementing a well-designed certification program could contribute to greater public confidence in the digital economy, but it remains to be seen whether the monetary penalties contemplated will be any more or less effective than current penalties.
Supporting innovation. The following proposals were put forward with a view to supporting innovation:
Throughout this update, we referred to the various ways in which Ontario’s proposed privacy law reform supports innovation. The proposals referenced above are more directly intended to encourage innovators, by providing much-needed clarity and guidance around the use of de-identified and anonymized information. This clarity would not only support innovation, but also be in the best interests of all stakeholders – being the innovators themselves, the individual data subjects, and our regulators.
Ontario’s proposals appear to be a step in this direction with individuals benefiting from greater transparency and the opportunity to play a more meaningful role in protecting their data, private-sector innovators thriving under a more clearly articulated regime and benefiting from increased consumer confidence, and regulators being empowered by a hardier regulatory regime.
There is still work to be done but we are cautiously optimistic about the quantity and quality of the feedback that the Ontario government has solicited on its white paper, and Ontario innovators’ ability to step up and contribute to developing effective legislation that will serve both private and public interests.
Once the legislation comes into effect, there will likely be a two-year transitional period intended to give organizations time and flexibility to become compliant with the new regime. We encourage readers to get a head start on assessing their privacy policies and procedures, and identifying the gaps they’ll need to address when the changes take effect.
The authors would like to thank Katie Helou, summer student, for her contribution to this legal update.
Publication
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Publication
Artificial intelligence (AI) raises many intellectual property (IP) issues.
Publication
We are delighted to announce that Al Hounsell, Director of Strategic Innovation & Legal Design based in our Toronto office, has been named 'Innovative Leader of the Year' at the International Legal Technology Association (ILTA) Awards.
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright LLP 2023