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Laws Expose Firms to Class-Action Risks

CLOUD COMPUTING—CANADA

November 28, 2012

Financial Post reports on lawyers’ assertions that the rapid development of privacy laws in Canada—while private- and public-sector businesses increasingly store customer data in the cloud—could lead to an influx of class-action lawsuits for data losses. Under anti-spam legislation and the recently established common law tort, plaintiffs have a “tremendous ability” to bring claims without proving harm, said Alex Cameron, an attorney at Toronto’s Fasken Martineau DuMoulin. “Over the past two years, Canada has seen a number of developments which point to a great increase in class-action activity for privacy-related issues,” he said. Federal privacy legislation holds businesses responsible for information processed by a third-party, the report states.
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