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One business wants to buy the assets of another business. Assume
that the consent obtained to the collection, use and disclosure of
personal information from the customers of the seller did not
include consent to disclose personal information on the sale of the
assets of the credit union. What to do?
In a recent case, the Ontario Superior Court of Justice granted an
order that the seller could disclose all personal information
in its possession in order to complete and implement the purchase
and sale transaction. The court further ordered that the purchaser
was entitled to continue to use the personal information provided
to it in a manner identical to the prior use by the seller.
The court made the order pursuant to section 7(3)(c) of the
Personal Information Protection and Electronic Documents
Act, 2000, c. 5 ("PIPEDA") which states that
disclosure may be made without consent in order to comply with an
order.
Justice P.D. Lauwers stated that he joined in "urging that
a route be provided that will permit the disclosure of the
necessary personal information in such circumstances as these to
avoid wasting the court's time and the parties'
funds."
Unlike the Alberta Personal Information Protection Act
and the British Columbia Personal Information Protection
Act, PIPEDA does not have a scheme to facilitate transfers of
personal information in the course of completing the sale of a
business.
About Fraser Milner Casgrain LLP (FMC)
FMC is one of Canada's leading business and litigation law
firms with more than 500 lawyers in six full-service offices
located in the country's key business centres. We focus on
providing outstanding service and value to our clients, and we
strive to excel as a workplace of choice for our people. Regardless
of where you choose to do business in Canada, our strong team of
professionals possess knowledge and expertise on regional, national
and cross-border matters. FMC's well-earned reputation for
consistently delivering the highest quality legal services and
counsel to our clients is complemented by an ongoing commitment to
diversity and inclusion to broaden our insight and perspective on
our clients' needs. Visit:
www.fmc-law.com
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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