Which federal Act governs the collection and use of personal information by organizations?

The correct answer is PIPEDA, which stands for the Personal Information Protection and Electronic Documents Act. This federal Act is specifically designed to regulate how private sector organizations collect, use, and disclose personal information in the course of commercial activities. PIPEDA sets out the ground rules for the handling of personal data and requires organizations to obtain consent from individuals for the collection and use of their personal information, thereby ensuring a level of protection for personal privacy.

Understanding PIPEDA is crucial for those in fields such as mortgage sales, where handling sensitive personal information is a regular part of business operations. Organizations must ensure compliance with PIPEDA to maintain the trust of their clients and avoid potential legal repercussions.

While the Privacy Act governs the handling of personal information by federal government institutions, it does not apply to private sector organizations. The Access to Information Act provides mechanisms for individuals to access information held by government bodies but is not applicable to how organizations manage personal information. The Canadian Charter of Rights and Freedoms guarantees fundamental rights and freedoms, including the right to privacy, but it does not directly regulate data collection practices by organizations like PIPEDA does.