When someone tells you ‘rules are rules’ it’s an intentionally obtuse way of stating the fact that there all sorts of instances where abiding by what’s been determined by others is not optional. You need to abide by those rules, and usually that’s agreeable to most people based on the fact they can see that the rules are sensible and work to protect the interests of the common good. Data privacy and protection can be an example of that too, and it’s ever-more important given how much of existence is gone digital now. This is why eCommerce websites here often must be in line with PIPEDA compliant hosting in Canada.
We can safely assume that a lot of people have no understanding of what PIPEDA web hosting is, and that may be true for some who are in the process of getting ready to take a business online. So that’s where we need to start here, with an explanation of what it is and what the acronym stands for. It’s the short form for the Personal Information Protection and Electronic Documents Act. It’s Principle 4.3 of Canada’s private-sector privacy law and it makes clear that any individuals must first be made aware that their data is being collected, and also that they must approve and then be informed of any sharing of that information.
And there’s plenty of demand for it unfortunately, as many of the people who are aiming to make a buck on the Internet don’t have a lot of scruples. There’s also the risk of sensitive financial information being leaked too, and that’s often the biggest reason why secure web hosting in Canada is such a need. Especially as users and customers / clients are more sensitive than ever about whether or not their data is kept private and considering that in many instances they have no choice but to make that information about themselves available if they’re to take advantage of what’s being offered to them.
Nearly every eCommerce site in Canada is going to offer SSL encryption if someone chooses to make an order using their credit card, and the need for that is obvious based on the fact that if someone else can gain your credit card number AND cvc code then there’s all sorts of possible trouble to be had. It’s a necessary feature really, but having them doesn’t mean you’re meeting the expectation for PIPEDA compliant hosting Canada.
There’s a lot more to it than that, and the type of Canadian data centers your web hosting provider uses won’t factor into it. So what we’ll do with this week’s entry here is take a deeper dive into PIPEDA compliance and how it can factor into your choice of web hosting type.
Already In Place
The long and short of it is most hosting providers here are ahead of the curve and already have protocols in place that match up with PIPEDA web hosting and the legal compliances that are required for many of the websites they’re hosting. All of this tied into what’s known as data residency, and if you are prepping to take a business online then this is at a topic you will want to familiarize yourself with. Data residency refers to the physical or geographic location where your business data is stored, and there are legal jurisdictions that stipulate where it can be stored based on the interests of consumer protection. The laws governing your data depend on the country where it resides, and in Canada there are place where it can be kept and places where it can never kept.
Assuring your website is PIPEDA compliant isn’t a foremost point with secure Canadian web hosting, but if you’re in eCommerce of any sort or more simply are offering goods or services available online then it’s good if you can be aware of what PIPED compliant hosting involves. And then having the assurance that your Canadian web hosting provider has the in-Canada data residency needed to ensure your site complies.
The Personal Information Protection and Electronic Documents Act most often pairs with provincial rules like PHIPA for healthcare and will require that sensitive information remain within Canadian jurisdiction. This means that if you’re going with a US-based hosting provider your data is almost certainly going to be kept outside of Canada and that means fewer restrictions on how it’s kept and / or made accessible. And that can be a problem.
This simple choice may mean that your site fails to meet PIPEDA compliance guidelines and so even if you are with a reputable global cloud provide you may face compliance risks and exposure to foreign legal systems. Getting PIPEDA web hosting will usually mean that the online business or venture will be in compliance with national privacy legislation. It will also mean it lines with the data confidentiality requirements that are also legally cemented here and serving to protect people who share their sensitive data.
Storing case files outside Canada may expose client information to foreign subpoenas, and that can lead to real headaches for an online business too. Then there’s the way that regulatory bodies like FINTRAC and OSFI require strict record-keeping and data management to prevent fraud and ensure compliance. It’s obvious how any business that handles card or bank account information for orders or subscriptions will very much want to know their web host has them protected against this.
Site owners can be aware as well that federal and provincial guidelines mandate that citizen data be stored within national borders to uphold privacy and sovereignty. This is why going with a reputable Canada web hosting provider like us here at 4GoodHosting is a good choice, because we have the structures in place to see to it their site is in compliance. Pair that with Canadian data centers that are located in close proximity to major metro urban areas like ours and it’s a very convincing argument to gain all of the benefits of local web hosting.
Individual Responsibility
The PIPEDA act does not actually require that Canadian personal information be retained and stored in Canada, but the site and the business behind it will be held accountable if data that should be protected becomes available in a way that violates the legal statutes put in place by the PIPEDA act. Business owners and site masters must ensure that appropriate administrative, physical, and technical safeguards are in place for this reason.
This makes it so that Canadian data residency is pretty much a must for anyone operating in industries like healthcare, education, and financial services, data residency isn’t just a buzzword — it’s a compliance requirement. Non-compliance can result in fines, legal challenges, and loss of client trust and there have even been instances of people firebombing the corporate offices of businesses that didn’t keep their data safe in Canada and they suffered as a result of it.
So obviously keeping a person’s financial information safe is supremely important, and data residency in Canada with a good web hosting provider is your best way of ensuring you have that for yourself. We can also weigh secure web hosting Canada by comparing it to the U.S., where their CLOUD Act allows government agencies to access most data stored on American servers. That’s not going to be seen very favourably considering that residents of EITHER country tend not have much trust if any in their governments, although in the US there’s a current dynamic that makes it an entirely different ball of wax.
With PIPEDA compliant hosting Canada any business can immediately and effectively keep themselves safe for any such possibility, and this is the type of assurance that they will want to make for their customers too. And again, especially if they are a small eCommerce business that’s set on growth and making a good name for themselves. If that’s you then keep those local Canadian data centers in mind too, and overall be aware that with PIPEDA web hosting
every email, file, and transaction hosted in Canada is shielded from prying eyes and unpredictable foreign policies.
If you’d like to learn more about site security in web hosting then anyone from our support team would be happy to discuss that with you, and for eCommerce sites that are just getting off the ground our SSL certificates are your immediate way of having SSL encryption of purchases through your site. We have you covered with everything you could want in the way of additional benefits for your business that are offered as part of one our Windows VPS web hosting packages.
