Canada sides with EU over data protection row

Canada today moved closer to aligning with the European Union (EU) on data protection legislation which requires companies to be more careful with consumer data.

The US government is currently at odds with Europe over its belief that government legislation is unnecessary and the industry should be self-regulating.

The feud has been on-going since October last year when the EU brought in data protection laws which require companies to register how they use consumer data or face prosecution.

Industry observers fear a transatlantic trade war could erupt unless the two sides can agree on how companies should treat consumer data.

John Woulds, director of operations at the Data Protection Registrar - which is overseeing the introduction of the 1998 Data Protection Act in the UK - said Canada's alignment with EU legislation will make it easier for the country to trade in Europe.

However, Woulds doesn't believe the disagreement between Europe and the US will result in a trade war.

Canada's 'Personal Information Protection and Electronic Documents Act' - also known as the C-54 bill - is now making its way through the final phase of the legislative process and could be in place as early as summer.