Canadian privacy watchdog to investigate risk of sharing economy
The Privacy Commissioner of Canada is looking into the gathering of sensitive personal information by companies in the sharing economy, including Airbnb and Uber, following a number of complaints. The watchdog has said it is concerned about what could happen to personal data in the event of a breach, especially given "the lack of clarity" surrounding issues of accountability. The Commissioner's report also warned of the risks posed by the sharing economy to Canada's welfare state and federal enforcement of labour laws.
OTTAWA—The federal privacy watchdog is looking into complaints against so-called “sharing economy” companies for the first time, the Star has learned.

In documents obtained under access to information law, privacy commissioner Daniel Therrien’s office suggested sharing-economy companies such as Uber and Airbnb are creating a “growing risk” to Canadians’ private information.

The key question, according to the documents, is who ultimately controls extremely sensitive personal information such as location data and financial information.

“In the sharing economy, certain personal information — going well beyond that traditionally needed for reserving lodging and hailing taxis — is collected to establish identity and trust,” the documents read.

“It is of great concern what might happen with (personal information) in the sharing economy in the event of a breach, especially given lack of clarity regarding accountability.”

In other words, unlike hailing a cab or booking a hotel room, some sharing-economy apps compile massive amounts of data on their users. A ride-sharing app can know where you usually travel — your work, your house, a favourite restaurant — and when you usually go there.

Therrien’s office confirmed earlier this month they have now received a number of complaints about sharing economy companies potentially violating Canadians’ privacy.

“I can tell you that we are still in the early stages of looking at this issue,” Tobi Cohen, a spokesperson for Therrien, wrote in an email.

“I can, however, confirm that we have received several complaints tied to the sharing economy.”

Cohen said the office would not go into any detail about the complaints, due to confidentiality provisions.

The Star reached out to Uber and Airbnb, two companies considered standard bearers for the sharing economy. Uber Canada spokesperson Susie Heath said the company “(doesn’t) have anything to add” to the issue. Repeated requests to Airbnb were not returned.

Uber has run into its fair share of privacy concerns south of the border. Citing court documents, a December 2016 report from the Centre for Investigative Reporting suggested employees at the “ride-booking” company could track the movement of ex-spouses, celebrities and politicians.

In 2014, reports revealed the company had a “God View” of their service, which could track users’ movements in real time.

Most of the clashes between sharing economy startups and government have occurred at the local level, where municipal governments are struggling to integrate new services within existing regulations and rules.

But the federal government has been paying close attention, too. The Star reported last year that a team of high-ranking public servants produced an in-depth study of sharing economy issues facing Ottawa.

The report, now public, noted the new industry poses risks to Canada’s social safety net (such as employment insurance and old age security), the ability for Ottawa to collect taxes and the federal government’s enforcement of labour laws including minimum wages.

But the documents released by the privacy watchdog point to a central problem in Ottawa addressing the sharing economy: a lack of concrete data on the scope of the industry in Canada.

“There is a need to gather more empirical data to help inform good policies and regulations that balance the benefits of this novel sector with adequate protections for those who engage in it,” the documents conclude.

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