ERMI Labs· Compliance · 2 min read
Data Sovereignty 101: What Canadian SMBs Need to Know About Bill C-27
Is your client data sitting on a server in Virginia? If you don't know the answer, you might be in trouble. We break down Bill C-27 without putting you to sleep.
Okay, let’s talk about something boring that could cost you a lot of money: Privacy Law.
I know, I know. You’d rather watch paint dry. But if you run a business in Canada, you need to pay attention to Bill C-27. It’s the government’s overhaul of our old privacy laws (PIPEDA), and it has teeth.
Here is the messy truth about where your data actually lives—and why it matters.
The “Virginia” Problem
Here is a scenario we see constantly: A Canadian law firm hires an IT provider. The provider sets them up on “The Cloud.” Everything works great.
What nobody realizes is that “The Cloud” is actually a server farm in Northern Virginia (us-east-1).
Why does this matter? Because under the US CLOUD Act, American law enforcement can demand access to data stored on US soil, even if it belongs to a Canadian company.
If you are holding sensitive info—legal files, health records, financial data—and you are storing it south of the border, you might be violating your client contracts without even knowing it.
What Bill C-27 Changes
The new law (the Consumer Privacy Protection Act part of the bill) basically says: “Ignorance is not an excuse.”
You can face massive fines—we’re talking up to 5% of global revenue—if you play fast and loose with personal data. You need to know:
- Where the data is.
- Who can see it.
- How to delete it if a customer asks.
If your answer to “Where is our backup stored?” is “Uhh, I think the IT guy set it up on Dropbox,” you are in the danger zone.
The Fix: Keep It Local
The solution is actually pretty simple: Data Sovereignty.
It just means keeping Canadian data in Canada. When we set up cloud environments for clients, we force everything into the Canada (Central) region in Montreal. We lock the doors so data literally cannot leave the country.
It costs about the same. It works exactly the same. But it keeps you compliant and keeps your data under Canadian law.
Don’t Panic, Just Check
You don’t need to fire your IT team. You just need to ask them one question today:
“Hey, can you confirm exactly which physical region our primary data and backups are stored in?”
If they say “US East” or “Global,” you need to talk.
We can help you move it home. At ERMI Labs, we specialize in repatriating data to Canadian soil. It’s usually a painless migration, and you sleep better at night.
Book a compliance review and let’s check your digital passport.
