Loblaw Companies Ltd. | Independent Data Protection Impact Assessment at Loblaw Companies Ltd.

Status
AGM passed
AGM date
Proposal number
6
Resolution details
Company ticker
L
Lead filer
B.C. General Employee's Union
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Digital rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Staples
Company HQ country
Canada
Resolved clause
The board of directors oversee an independent Data Protection Impact Assessment11 of Loblaw’s healthcare offerings, covering PC Health, Lifemark and QHR (AccuroEMR). The assessment should describe measures ensuring appropriate use and informed consent for patient data, be prepared at reasonable cost, exclude confidential and proprietary information and be published on Loblaw’s website.
Supporting statement
Loblaw has significantly expanded its healthcare business, operating over 1,800 pharmacies, MediSystem Inc. (serving long-term care facilities), Lifemark Health Group (therapy clinics), and healthcare services like PC Health, AccuroEMR (electronic medical records) and a minority stake in Maple (telemedicine). By 2025, Loblaw aims to open 250 pharmacy care clinics, a move that has drawn criticism.1 The PC Health app, launched in 2021, links users to health services, product recommendations, and wellness-based loyalty points. One academic described it as a "cheap data grab," raising concerns over the use of sensitive health data.2 Research suggests virtual care companies, including Loblaw’s, may not adequately protect patient privacy.3 While Loblaw’s Health and Wellness Privacy Notice outlines safeguards, concerns remain about potential data sharing with other parts of its commercial operations. A 2023 Privacy Commissioner of Canada study found 61% of Canadians distrust businesses with consumer privacy rights, with retailers ranking particularly low (39%).4 Although Loblaw likely complies with provincial laws, legislation on health data and loyalty points is often outdated. Recent events — an Office of the Privacy Commissioner of Canada investigation into PC Optimum account deletions5 , a proposed class action related to pharmacy practices6 , and a preferred pharmacy network agreement between Manulife and Shoppers was scuttled following criticisms from the public and the federal government – underscore potential regulatory and reputational risks.7 Regulatory scrutiny of data practices in healthcare is increasing globally. In the U.S. companies like Amazon have faced regulatory scrutiny for mishandling patient data8,9, with regulators including the U.S. Federal Trade Commission taking enforcement action, highlighting regulatory risk.10 Loblaw, amid its efforts to "build the future of pharmacy,” must address similar risks. Investors see transparency in data governance as critical for mitigating reputational, legal and financial risks while rebuilding trust. An assessment that discloses information about how the company is ensuring patients are informed about what data is collected and how it will be used would give investors greater confidence these issues are being effectively managed.

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