BC Personal Information Protection Act May Apply Even If Entity Lacks Physical Presence There

On December 18, 2024, in Clearview AI Inc. v Information and Privacy Commissioner for British Columbia, 2024 BCSC 2311, the Supreme Court of British Columbia (the Court) held that British Columbia’s Personal Information Protection Act (BC PIPA) applies to organizations operating outside of British Columbia (BC) that have a “real and substantial connection” to the province.

The U.S. based artificial intelligence company, Clearview AI Inc. (Clearview), provides facial recognition services using images of individuals, including Canadians, that it scrapes from the internet. In 2020, Clearview suspended its services to users following the commencement of a joint investigation by Canadian privacy commissioners into its activities, as previously reported by the E-TIPS® Newsletter here. However, Clearview continued to collect data from Canadians, including data from persons in BC. In 2021, the BC Information and Privacy Commissioner (the Commissioner) issued an order to:

1. prohibit Clearview from offering its services to clients in BC using personal information collected from BC individuals without consent;
2. cease the collection, use and disclosure of personal information collected from BC individuals without consent; and
3. delete personal information collected from BC individuals without consent.

Clearview argued, among other things, that BC PIPA did not apply to its activities and sought judicial review of the Commissioner’s order to quash and set it aside.

The Court considered whether there was a “real and substantial connection” that would subject Clearview to BC PIPA. It determined that despite lacking a physical presence in the province, Clearview’s activities, namely, marketing and providing its services to entities in the province; and collecting, using and disclosing personal information of individuals in BC, was enough to create a “real and substantial” connection to BC that BC PIPA would apply. The Court also noted that the collection, use and disclosure of personal information of individuals in BC, alone, was sufficient to find a “real and substantial connection” to the province.

Accordingly, the Court dismissed Clearview’s petition for judicial review.

Summary By: Victoria Di Felice