Report: ‘Lawful Access’ Laws Threaten Canadian ISPs

LOS ANGELES — The shifting Internet playing field is creating a variety of issues for operators in all arenas, including small web hosts that could be priced into extinction.

One such example comes from Canada, where reports indicate that among other factors, costs associated with implementing proposed Internet surveillance laws could harm and potentially bankrupt smaller Internet Service Providers (ISPs).

According to The Huffington Post, three pieces of legislation that are now pending before Canada’s Parliament would vastly expand law enforcement’s legal ability to collect various forms of intelligence online; such as compelling ISPs to reveal subscriber information, including names, email addresses and phone numbers, without a warrant.

It is a provision requiring ISPs to install real time network monitoring equipment that will allow law enforcement to monitor a suspect’s Internet access and communications as they happen, however, that is worrying the Canadian Network Operators’ Consortium —  a trade body representing more than two dozen ISPs.

Many CNOC members are small to mid-size ISPs with limited financial resources.

“The degree of network monitoring and surveillance they’re asking for is alarming in terms of its costs,” CNOC President Bill Sandiford, who also serves as president of ISP Telnet, stated. “If [some of these] small ISPs need to spend $1 million to be compliant … that could mean the end of them.”

“We’ve co-operated with law enforcement many, many times over the years,” Sandiford stated, adding, “Who’s going to compensate us for this?”

A revised version of the proposals is expected to be introduced later this year.

“The legislation has been condemned by many digital rights activists — as well as provincial and federal privacy commissioners — as a potentially dangerous expansion of police power,” Daniel Tencer wrote for The Huffington Post, “and as the thin end of the wedge to an unaccountable surveillance state.”

Regardless of the final outcome of this legislation or any impact it may have on ISPs, it stands as another example of the global uptick in legislation aimed at monitoring and controlling how people use the Internet; as well as an example of the growing barriers to entry and operation presented by this maturing marketplace.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

BranditScan Launches 'White Glove' Subscription Tier

BranditScan has launched its new White Glove subscription tier for creators.

German Court: Regulator Can't Block Entire IG Accounts, Only Posts

A German court has ruled that while a regional media regulatory agency may block specific Instagram posts that include material deemed harmful to minors, it cannot ban an entire Instagram account due to such a post.

Brazil Lays Out Preliminary Guidelines for New AV Requirements

President Luiz Inácio Lula da Silva on Wednesday signed a decree establishing guidelines for new regulations requiring adult websites to age-verify users located in Brazil.

Senate Committee Debates Section 230 Reform

The U.S. Senate Committee on Commerce, Science, and Transportation held a hearing Wednesday on potential changes to Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Pearl Industry Network Offers Free Creator Memberships

Industry trade group Pearl Industry Network (PiN) has launched its free creator membership initiative.

Sam Bird Acquires Fanblast

Sam Bird, former co-director of global talent agency Surge, has acquired creator monetization tool Fanblast and named himself CEO.

'SheHerGirls' Launches Through Paysite.com

The braintrust behind PoleVixens has officially launched a new membership site, SheHerGirls, also through Paysite.com.

FTC Invites Public Comment on 'Click to Cancel' Rulemaking

The Federal Trade Commission (FTC) announced this week that it is seeking public comment on whether it should amend its Negative Option Rule to better address deceptive or unfair practices.

Aylo Rebuts Indiana AV Suit Claims Over VPN Access

Aylo this week asked a Marion Superior Court judge to dismiss Indiana’s lawsuit alleging that the company violated the state’s age verification law by failing to prevent access by users who employ VPNs and similar means to avoid geolocation.

'PSMTickling' Launches Through Paysite.com

PSMTickling.com has officially launched through Paysite.com.

Show More