Final answer:
The federal legislation that regulates the use of personal information in the private sector is the Personal Information Protection and Electronic Documents Act (PIPEDA).
Step-by-step explanation:
The federal legislation that regulates the collection and use of personal information in the private sector in Canada is known as the Personal Information Protection and Electronic Documents Act (PIPEDA). This law outlines the rules private-sector organizations must follow when collecting, using, or disclosing personal information in the course of commercial activity. Under PIPEDA, individuals have the right to access and challenge the accuracy of the information that organizations hold about them. It is the cornerstone of data privacy laws for the private sector and aims to balance an individual's right to privacy with the needs of organizations to collect and use personal information for legitimate business purposes.