Short Title Short title 1 This Act may be cited as the  Online Algorithm Transparency Act . Interpretation Definitions 2 The following definitions apply in this Act. algorithm  means an automated decision system or any technology that assists or replaces the judgement of human decision-makers using techniques such as rules-based systems, regression analysis, predictive analytics, machine learning, deep learning and neural nets. ( algorithme ) biometric information  means information that is derived from an individual measurable physiological or biological characteristics that may be used, singly or in combination with each other or with other identifying data, to establish the identity of an individual, and includes: (a) genetic information, including blood type; (b) imagery of the iris, retina, fingerprint, face, hand, palm or vein patterns and voice recordings from which an identifier template, such as a faceprint, a minutiae template or a voiceprint, can be extracted; (c) keystroke patterns or rhythms, gait patterns or rhythms and sleep, health or exercise data that contain identifying information; and (d) any mathematical code, profile or automated model derived from information regarding the physiological or biological characteristics of an individual. ( renseignements biométriques ) commercial activity  means any particular transaction, act or conduct or any regular course of conduct that is of a commercial character, other than any transaction, act or conduct that is carried out for the purposes of law enforcement, public safety, the protection of Canada, the conduct of international affairs or the defence of Canada. ( activité commerciale ) Commission  means the Canadian Radio-television and Telecommunications Commission. ( Conseil ) de-identify  means to modify personal information — or to create information from personal information — by using technical processes to ensure that the information does not identify an individual or could not be used in reasonably foreseeable circumstances, alone or in combination with other information, to identify an individual. ( dépersonnaliser ) Minister  means the Minister of Industry. ( ministre ) online communication service  means a service that is offered in the course of any commercial activity accessible to persons in Canada and whose primary purpose is to enable users of the service to communicate over the Internet with other users of the service. It excludes services that enable users to engage only in private communications. ( service de communication en ligne ) online communication service provider  means a person that provides an online communication service. It does not include a person that  (a) provides a  telecommunications service , as that term is defined in subsection 2(1) of the  Telecommunications Act , by reason only that another person uses their telecommunications service to provide an online communication service; and  (b) indicates the existence or location of content or hosts or caches the content or information about the location of the content, by reason only that another person uses their services to provide an online communication service. ( fournisseur de service de communication en ligne ) online platform  includes an Internet site or Internet application whose owner or operator, in the course of their commercial activities, sells, directly or indirectly, advertising space on the site or application to persons or groups. ( plateforme en ligne ) personal information  means information about an identifiable individual, including biometric information. ( renseignements personnels ) prohibited grounds of discrimination  has the same meaning as in subsection 3(1) of the  Canadian Human Rights Act . ( motifs de distinction illicite ) Purpose Purpose 3 The purpose of this Act is to ensure that online communication service providers do not use algorithms that use personal information in a manner that results in the adverse differential treatment of any individual or group of individuals based on one or more prohibited grounds of discrimination and to require transparency in the use of algorithmic processes and content moderation and for other purposes. Discrimination Prevention Disclosure 4 An online communication service provider must make the following readily available on its online platform to its users: (a) a description of the type of personal information it collects, uses or discloses and the manner in which it does so; (b) a description of how the provider uses the personal information collected through its algorithm; (c) the method by which the algorithm used by the provider prioritizes, assigns weight to or ranks different categories of personal information to make predictions, recommendations or decisions about a user and to withhold content from that user or amplify or promote content to them; and (d) a statement as to whether the provider carries out any international or interprovincial transfer or disclosure of personal information that may have reasonably foreseeable privacy implications.  Non-discrimination 5 An online communication service provider must take measures to ensure that the procedures, practices, rules and systems, including algorithms, put in place for the purpose of moderating content that is communicated on its online communication service and that is accessible to individuals in Canada do not result in adverse differential treatment of any individual or group of individuals based on one or more prohibited ground of discrimination. Prohibition — prohibited grounds of discrimination 6 It is prohibited for an online communication service provider to use any online platform design features, including an algorithm, or otherwise use the personal information of an individual (a) in a manner that discriminates against that individual based on one or more prohibited grounds of discrimination by making unavailable to them goods, services, facilities or accommodation customarily available to the general public; or (b) for the purpose of advertising, marketing, soliciting, offering, selling, leasing, licensing, renting or otherwise commercially contracting for housing, employment, credit, insurance, healthcare or education opportunities in a manner that discriminates against, or otherwise makes the opportunity unavailable for, that individual based on one or more prohibited grounds of discrimination. Exceptions 7 Nothing in this Act prevents an online communication service provider from using personal information for the purpose of (a) conducting internal testing to prevent unlawful discrimination, identify differential outcomes or discriminatory practices, or otherwise determine the extent or effectiveness of its compliance with this Act; or (b) advertising, marketing or soliciting economic opportunities — which must not be of lower quality or contain terms that are less desirable than similar opportunities it advertises, markets or solicits to the general public — to under-represented groups in a fair and non-deceptive manner. De-identification of Personal Information Proportionality of technical and administrative measures 8 (1) An online communication service provider that de-identifies personal information of its users must ensure that any technical and administrative measures applied to the information are proportionate to the purpose for which the information is de-identified and the sensitivity of the personal information. Prohibition (2) An online communication service provider must not use de-identified information alone or in combination with other information to identify an individual, except in order to conduct testing of the effectiveness of security measures that it has in place to protect the information. Records Keeping records 9 An online communication service provider must keep and maintain all records of data and information in their possession or control that are necessary to determine whether they have complied with this Act. Advisory Committee Advisory committee 10 (1) There is established an advisory committee composed of seven members appointed by the Governor in Council for a term of five years. Expertise (2) Members of the advisory committee must have specialized or technical knowledge and experience relating to online platforms and algorithms as well as human rights and discrimination. Remuneration and expenses (3) The members are to be paid the remuneration fixed by the Governor in Council and are entitled to be paid reasonable travel and other expenses incurred in the performance of their duties and functions under this Act while absent from their ordinary place of residence. Chair (4) The Governor in Council is to appoint the Chair of the advisory committee from among its members. Meetings (5) The Chair may determine the times and places at which the advisory committee will meet, but it must meet at least twice a year. Mandate 11 (1) The mandate of the advisory committee is to advise the Minister by conducting research and studies on the use by online communication service providers of online platform design features, including algorithms, that enable the providers to use the personal information of individuals in a manner that results in discrimination. Annual report (2) Within one year after the day on which this section comes into force, and every year after that, the advisory committee must submit a report to the Minister that sets out its conclusions and recommendations in relation to the research and studies conducted under subsection (1). Tabling (3) The Minister must cause the report to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives it. Administration and Enforcement Inspectors 12 (1) The Commission may designate any qualified individual as an inspector for the purpose of verifying compliance or preventing non-compliance with the provisions of this Act. Certificate (2) The Commission must provide the inspector with a certificate of designation, which the inspector must present at the request of any individual in charge of any place entered by the inspector. Authority to enter a place 13 (1) Subject to subsection 14(1), an inspector may, for a purpose related to verifying compliance or preventing non-compliance with this Act, enter a place in which they have reasonable grounds to believe that an activity regulated under this Act is conducted. Powers of inspector (2) The inspector may, for the purpose referred to in subsection (1), (a) examine a document, make copies of it or take extracts from it; (b) use or cause to be used a computer or other device to examine data that is contained in or available to a computer system or reproduce it or cause it to be reproduced in the form of a printout or other intelligible output and remove the output for examination or copying; (c) use or cause to be used copying equipment and remove the copies for examination; (d) order any individual present to establish their identity to the inspector’s satisfaction; (e) order any individual who, in the place, conducts an activity regulated under this Act to stop or start the activity; (f) prohibit or limit access to all or part of the place or to anything that is in the place; and (g) remove anything from the place for the purpose of examination. Individuals accompanying inspector  (3) The inspector may be accompanied by any individual that they believe is necessary to help them exercise their powers or perform their duties or functions under this section. Assistance to be given to inspector  (4) The owner of the place, the individual in charge of it and every individual in it must give all assistance to the inspector that is reasonably required to enable the inspector to exercise
their powers or perform their duties or functions under this Act and provide them with any document or information, or access to any data, that they may reasonably require.
 Dwelling-house  14 (1) If the place is a dwelling-house, the inspector is not authorized to enter it without the occupant’s consent, except under the authority of a warrant issued under subsection (2). Authority to issue warrant  (2) A justice of the peace may, on  ex parte  application, issue a warrant authorizing, subject to any conditions specified in the warrant, the inspector named in it to enter a dwelling-house if the justice of the peace is satisfied by information on oath that (a) the dwelling-house is a place referred to in subsection 13(1); (b) entry to the dwelling-house is necessary for a purpose referred to in subsection 13(1); and (c) entry to the dwelling-house was refused by the occupant or there are reasonable grounds to believe that it will be refused or to believe that consent to entry cannot be obtained from the occupant. Use of force (3) In executing a warrant issued under subsection (2), the inspector is not entitled to use force unless the use of force has been specifically authorized in the warrant and they are accompanied by a peace officer. Telewarrant (4) If an inspector believes that it would not be practicable to appear personally to make an application for a warrant under subsection (2), a warrant may be issued by telephone or other means of telecommunication, on information submitted by telephone or other means of
telecommunication, and section 487.1 of the  Criminal Code  applies for that purpose, with any necessary modifications.
 Information requirement 15 (1) An inspector who believes that a person is in possession of information that the inspector considers necessary for the purpose of verifying compliance or preventing non-compliance with this Act may, by notice, require that person to submit the information to them in the form and manner and within the reasonable time that is stipulated in the notice. Obstruction, false information (2) It is prohibited for a person to (a) resist or willfully obstruct the inspector in carrying out the inspector’s duties; or (b) knowingly make a false or misleading statement, either orally or in writing, to the inspector. Offences and Punishment Contravention of sections 4 to 6 16 Every online communication service provider that contravenes sections 4, 5 or 6 is guilty of an offence and liable, (a) on conviction on indictment, to a fine of not more than $1,000,000; and (b) on summary conviction, to a fine of not more than $100,000. Contravention of sections 8 or 9 17 Every online communication service provider that contravenes sections 8 or 9 is guilty of an offence and liable on summary conviction, for a first offence, to a fine of not more than $50,000 and, for a subsequent offence, to a fine of not more than $100,000. Proof of offence 18 In a prosecution of an online communication service provider for an offence under this Act, it is sufficient proof that the provider has committed the offence to establish that the act that constitutes the offence was committed by an employee of the service provider, whether or not the employee has been identified. Liability of directors and officers 19 If an online communication service provider commits an offence under section 16, every director or officer of the provider who directed or influenced the provider’s policies or activities in respect of the conduct that is the subject matter of the offence is a party to and guilty of the offence and liable on conviction to the punishment provided for under that section for the offence, whether or not the online communication service provider has been prosecuted or convicted. No imprisonment 20 Despite subsection 787(2) of the  Criminal Code , no term of imprisonment is to be imposed in default of payment of a fine that is imposed under this Act. Annual Reports Annual report by Commission 21 (1) Within three months after the end of each fiscal year, the Commission must prepare and submit a report to the Minister on the administration of this Act during that year, including on any inspections conducted, setting out the Commission’s conclusions and recommendations. Tabling (2) The Minister must cause the report to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives it. Publication (3) The Minister must publish the report on the website of the Department of Industry within 10 days after the report has been tabled in both Houses of Parliament. Annual report by Minister 22 (1) Within six months after the end of each fiscal year, the Minister must prepare a report on the administration of this Act during that year, setting out the Minister’s conclusions and recommendations. Tabling (2) The Minister must cause the report to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the report is completed. Publication (3) The Minister must publish the report on the website of the Department of Industry within 10 days after the report has been tabled in both Houses of Parliament. Regulations Regulations 23 The Governor in Council, on the recommendation of the Minister following consultations with the Commission, may make regulations for carrying out the purposes and provisions of this Act, including regulations (a) respecting the categories of services that may be included in or excluded from the definition  online communication service ; (b) respecting the meaning of the term “private communication” for the purposes of the definition  online communication service ; (c) prescribing the form and manner, including the languages, in which the disclosure under section 4 is to be made to users; (d) prescribing, for the purpose of section 9, the records to be kept and maintained by the online communication service provider, the manner in which they are to be kept and maintained and the period during which they are to be kept and maintained; and (e) establishing a system of administrative penalties and consequences — including administrative monetary penalties — applicable to the violation by an online communication service provider of any provision of this Act and setting the amounts of those administrative monetary penalties. Coming into Force First anniversary 24 (1) This Act, except for sections 4, 21 and 22, comes into force on the first anniversary of the day on which it receives royal assent. Eighteen months after royal assent (2) Sections 4, 21 and 22 come into force 18 months after the day on which this Act receives royal assent.