Alberta General Insurance Level 1 Practice Exam

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How should information be treated according to PIPEDA?

  1. Shared freely among businesses

  2. Held in the strictest confidence

  3. Used for any purpose once collected

  4. Made public after a certain period

The correct answer is: Held in the strictest confidence

PIPEDA, or the Personal Information Protection and Electronic Documents Act, is a Canadian law that governs the collection, use, and disclosure of personal information. Option A is incorrect because PIPEDA requires organizations to have consent from individuals before sharing their personal information. Option C is also incorrect because organizations must limit the use of collected information to the purpose for which it was collected. Option D is incorrect because PIPEDA requires organizations to protect personal information and take measures to prevent unauthorized disclosure. Therefore, option B, which entails holding information in the strictest confidence, is the correct answer according to PIPEDA.

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