Caitlin Schropp
Associate
Article
On May 6, 2026, the Office of the Privacy Commissioner of Canada (OPC), together with the Commission d’accès à l’information du Québec (“CAI”), the Office of the Information and Privacy Commissioner for British Columbia (“OIPC-BC”), and the Office of the Information and Privacy Commissioner of Alberta (“OIPC-AB”) (the “Offices”), jointly released findings from their investigation into OpenAI’s privacy practices related to ChatGPT.
The Offices’ investigation was originally commenced in April 2023 as a result of an individual complaint to the OPC. By May 2023, the OPC closed the individual complaint and initiated a broader joint inquiry with privacy regulators from Québec, British Columbia, and Alberta. The investigation examined compliance with Canada’s Personal Information Protection and Electronic Documents Act (“PIPEDA”), Québec’s Act Respecting the Protection of Personal Information in the Private Sector (“Québec’s Private Sector Act”), British Columbia’s Personal Information Protection Act (“PIPA-BC”) and Alberta’s Personal Information Protection Act (“PIPA-AB”).
The Offices examined practices across seven key compliance principles: appropriate purposes, consent, openness and transparency, accuracy, individual rights (access, correction, and deletion), retention, and accountability. Within these areas, the investigation addressed several notable areas for AI developers, including consent requirements for scraping publicly accessible information for training of AI models, privacy-by-default obligations in Québec, accuracy standards for AI-generated outputs containing personal information, and the technical limits of access, correction, and deletion rights in the context of LLMs.
The Offices’ lengthy decision contains a wide range of useful guidance on the privacy compliance expectations of regulators across Canada, and points where they diverge, relevant for any organization that develops, deploys, or integrates AI software processing personal information throughout the lifecycle of its large language models (LLMs).
All Offices found they had jurisdiction to investigate and make recommendations or orders, where an organization is collecting, using, and disclosing the personal information of individuals in respect of a province, in the course of commercial activity, and where services were made available to Canadian users, even when it does not have an established physical presence in Canada.
a. Purpose limitation and proportionality
The Offices accepted that developing and deploying an LLM may represent an appropriate purpose and may be effective in advancing a legitimate need. AI developers should nevertheless be able to establish that the collection, use and disclosure of personal information is limited to what is necessary and proportionate. The Offices found that collection from publicly accessible websites and licensed datasets may be overbroad where mitigation measures are not sufficient to limit the scope of personal information to what is necessary; by contrast, the use of user interactions for model training may be proportional where residual privacy risks are significantly mitigated.
The regulators also recognized the necessity and proportionality of using a certain level of user interaction data (e.g., prompts) to improve model outputs, particularly where organizations disassociate interactions from user accounts, remove personal identifiers using filtering tools, allow users to opt out of training, instruct users not to include sensitive information, and limit training to a small subset of interactions.
b. Consent for public or licensed training data
The Offices diverged materially in their analysis of valid consent for collection and use of training data that includes personal information. The OPC accepted, in a pragmatic and flexible interpretation of PIPEDA, that implied consent may support use of publicly available and licensed data for future dataset training where privacy risks are significantly and meaningfully mitigated (such as by training models to refuse to provide private or sensitive information in their outputs). However, it can be relied upon only where the information is not sensitive and the collection, use and disclosure falls within users’ reasonable expectations.
The OIPC-BC and OIPC-AB concluded that PIPA-BC and PIPA-AB do not contain the PIPEDA concept of implied consent and instead impose specific requirements for “implicit,” “deemed,” or “notice” consent—all of which require that individuals provide their information for the purpose of training AI models, following proper notice. These requirements must be complied with to ensure valid consent for publicly accessible and licensed training data.
The CAI, applying the distinct requirements of Québec's Private Sector Act, emphasized that organizations should not assume that personal information posted online may be collected and used for AI training. Whether valid consent exists depends on the circumstances in which the information was originally collected, including the notice provided to individuals and the applicable website terms and privacy policies. Organizations should therefore verify that individuals were informed their information could be made publicly available and used by third parties, including for AI training where applicable, and ensure that the information was not disclosed without valid consent, including parental or tutor consent where required for individuals under the age of 14.
a. Consent and notice
To ensure valid consent to use user interaction data for training purposes, AI developers should obtain express consent where the information collected and used for training includes sensitive personal information and/or the use is not within users' reasonable expectations. Prior to collection, AI developers must provide explicit notice to users stating the purposes for, and the means by, which the information is collected, used or disclosed. The notice must also provide details of how users can exercise their rights of access and rectification/correction provided by law and their right to withdraw consent to the disclosure or use of the information collected. A one-time notification at account creation or first use is not sufficient where users are unlikely to understand the nature, purposes and consequences of the processing.
b. Privacy settings and privacy by default
For Québec users, AI developers should configure technological products or services so that privacy settings provide the highest level of privacy by default, without any intervention by the user. This obligation, introduced by the Law 25 amendments to Québec’s Private Sector Act (in force since September 2023), is codified in section 9.1. The CAI concluded that section 9.1 applies to the entire lifecycle of personal information, including collection, use, disclosure and retention, and that settings relating to the use of user interactions for training of AI models fall within the scope of that obligation.
a. Consent for disclosure
AI developers should treat model outputs as potential disclosures of personal information, including where outputs contain opinions, rumours, sensitive information or information outside an individual's reasonable expectations. Consent from the individual whose information is disclosed is therefore required under all four privacy statutes. The OPC found that the challenges with ensuring consent may be resolved by the implementation of mitigating measures to significantly reduce the risk that private or sensitive information is disclosed as model outputs. The OIPC-BC and OIPC-AB found that the requirements for implicit, deemed or notice consent also apply to disclosure, and declined to make a similar finding. The CAI similarly reiterated that the rules governing consent for collection and use apply to communication of personal information and concluded that disclosure of personal information in model output without consent contravenes Québec's Private Sector Act.
b. Accuracy safeguards
The Offices found that AI developers should take reasonable steps to ensure that personal information generated or disclosed by a model is accurate, complete and up to date as necessary for the purposes for which it is to be used. Developers should not rely on inconspicuous or inconsistent disclaimers as to accuracy. They should assess the level of accuracy of personal information in outputs, prominently inform users of limitations and the need to verify facts, and provide mechanisms to verify sources.
a. Access requests
AI developers should ensure that individuals can inform themselves of the existence, use and disclosure of their personal information without unreasonable effort. Self-service export tools may be helpful, but they should be accessible, user-friendly and complete enough to explain what personal information is held, used or disclosed. Self-service access data extract tools do not provide a blanket answer to access obligations, where they do not address potential disclosure to third parties, and provide technical and confusing outputs.
b. Correction and deletion
AI developers should provide procedures that allow individuals to challenge the accuracy and completeness of personal information and have it amended as appropriate, and should permit individuals to withdraw consent and seek deletion where applicable. Where model architecture makes true correction, unlearning or deletion difficult or impossible, developers should implement pragmatic alternatives such as blocklists and output filters for individuals’ verified personal information. Certain measures may be taken—including blocking mechanisms, output filtering, and exclusion from future training datasets—that may satisfactorily reduce the risk of disclosing individuals’ personal information.
AI developers should establish and implement retention and disposal policies, including retention schedules for training datasets, system prompts and outputs, and should destroy, de-identify or anonymize personal information once it is no longer required to fulfil identified purposes. Retaining unstructured raw data indefinitely for successive model iterations increases risks, especially where datasets may include sensitive, inaccurate or outdated information.
However, for PIPEDA purposes, the OPC indicated that it may be acceptable to retain data as a historical benchmark for scientific integrity purposes, provided that the information is segregated and stored within a secure archive with limited access, strong protections are in place to ensure the data is not used for other purposes including model development, data subject rights continue to apply to segregated datasets, and the organization regularly re-evaluates whether it needs to retain each dataset. The CAI found that individuals must be informed prior to collection of all purposes for dataset retention, including historical reference and scientific integrity purposes, and personal information should be anonymized once collection purposes have been fulfilled.
Accountability requires AI developers to designate one or more individuals to oversee compliance and to implement policies and practices that give effect to the applicable Acts. Developers should have privacy management, accuracy assessment, consent, retention and mitigation measures in place before deployment, rather than relying on remedial steps after harms arise.
Organizations that deploy third-party AI tools—rather than developing their own models—remain accountable for personal information processed through those tools. Under PIPEDA and provincial statutes, an organization that transfers personal information to an AI service provider must use contractual or other means to ensure comparable protection. Deployers should conduct due diligence on their AI vendors’ privacy practices, including training data sources, consent mechanisms, and data retention policies.
For tailored guidance on how the report’s findings might impact your organization’s privacy practices, please contact a member of our Cyber Security and Data Protection team and Artificial Intelligence Group.
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