Navigating Quebec Law 25 and data portability: What does it mean for your business?

In a time when so much of our information is stored digitally, Quebec Law 25 has been a pivotal development for digital privacy rights. The law, which was initiated in 2021, has been slowly coming into effect over a three-year period. In September of 2024, the law introduced the right of data portability, allowing individuals to request, obtain, and reuse their personal data across different services and organizations. For entrepreneurs and business owners across Quebec, this can present both opportunities and challenges. Understanding this legislation and its implications is crucial for maintaining compliance and making sure sensitive information is secure.

Law 25 and data portability

In the final phase of its rollout, Quebec Law 25 aims to enhance the portability of personal data. This law grants individuals the right to request their personal data in a structured, commonly used format. In doing so, the law helps facilitate a consumer’s ability to transfer their data between different service providers. This gives consumers control over their personal data and increases transparency in digital interactions.

Data privacy and security

In the context of Quebec Law 25, data privacy and security are critical. When businesses make consumer data portable, they should also be prioritizing the safety of this information.

Data breaches and unauthorized access pose significant risks to businesses. The consequences of failing to protect consumer data can be severe, ranging from financial repercussions to reputational damage. By proactively addressing data privacy concerns, businesses can mitigate these risks and maintain consumer trust.

Implications for your business

Since its inception, Quebec Law 25 has introduced several implications for businesses operating in the province – from implementing enhanced data security measures to enacting governance policies for personal information. Most recently, the right of data portability could increase the risk of cyber security breaches. If this legislation leads to increased data transfer requests, companies will need a robust verification process to ensure the legitimacy of these requests.

How can I verify a request is legitimate?

Multi-Factor Authentication (MFA) can serve as a defense mechanism for customer data security. MFA requires users to provide multiple forms of verification before accessing sensitive information. This could involve a combination of passwords, personal information, and verification codes sent to a separate device or account. By employing MFA, businesses can bolster their security infrastructure and protect against unauthorized access.

With data portability, businesses must ensure that requests for customer data are legitimate and secure. MFA can add an additional layer of protection, verifying the identity of individuals making data portability requests and mitigating the risk of fraudulent ones.

Enhancing your business’ security

To comply with Quebec Law 25 and uphold data security standards, businesses can take several other proactive measures to ensure a data portability request is legitimate and customer data is secure.

Employee training: Educating employees on how to verify data requests and identify potential phishing attempts can be essential for ensuring customer data is secure.Detailed request validation: Ensure data requests include specific details that only the legitimate individual would know.Continuous Monitoring: Regularly assess your data security systems and adjust as necessary. Continuous monitoring can help identify vulnerabilities before bad actors do.

Ensure you’re protected with cyber insurance

As laws and regulations evolve, it’s hard to know what’s next for the digital information your business stores. Ensuring you’re covered in the event of a loss is imperative. Beyond the financial ramifications, security and data breaches can severely impact your reputation with your clients and customers.

To learn more about protecting yourself and your business, visit our cyber risk insurance page today.