Final answer:
The correct answer is that a sole proprietorship is not exempt from PIPEDA. Businesses, regardless of their legal structure, are subject to PIPEDA's privacy requirements.
Step-by-step explanation:
The correct answer is A. You are exempt from PIPEDA because your business is a sole proprietorship. PIPEDA, which stands for the Personal Information Protection and Electronic Documents Act, is a Canadian law that governs the collection, use, and disclosure of personal information by businesses. It applies to all organizations, regardless of their legal structure, including sole proprietorships. Therefore, as the owner of a fitness club, you are not exempt from PIPEDA.
Other statements in the question are true:
- B. You must limit the collection of information to only what you need. As per PIPEDA, businesses must collect only the necessary personal information and cannot collect more than what is required for the purpose of providing the service.
- C. You must designate an individual responsible for dealing with privacy issues. PIPEDA requires businesses to appoint a privacy officer who is responsible for ensuring compliance with privacy laws and handling privacy-related inquiries and complaints.
- D. You must obtain the consent of clients in order to collect, store and use the information. Consent is a key principle of PIPEDA. Businesses must inform individuals about the purpose of collecting their personal information and obtain their consent before collecting, using, or disclosing it.