Canada introduced Bill C-34 on June 10, 2026, proposing the Digital Safety Act (DSA) and the Digital Safety Commission of Canada Act (DSCC Act). The omnibus bill aims to regulate social media platforms, AI chatbots, and other online services, establishing a new regulator, the Digital Safety Commission of Canada (DSCC), to enforce the rules. Penalties for non-compliance can reach the greater of C$10 million (about US$7.2 million) or 3% of global revenue, according to medianama.com.
Bill C-34 covers three categories of services, each subject to user thresholds set later by regulators. Regulated social media services face the strictest obligations. Regulated chatbot services include AI systems with natural language interfaces capable of sustained human-like interactions and generating non-predetermined responses. The bill also targets other online services flagged by the Governor in Council as posing significant risks to children. The legislation excludes telecoms providing basic internet connectivity, private messaging features, search engines, navigation tools, and e-commerce listings.
The bill requires all regulated services to incorporate child-protection design features and verify or estimate users’ ages. While proactive content scanning is not mandatory, regulators may require technology to block uploads of child sexual abuse material. The creation of the DSCC introduces a dedicated enforcement body to oversee compliance, marking a notable step in Canada’s approach to digital safety. The legislation aligns with global trends toward stricter regulation of online platforms and AI-driven services.
Bill C-34 remains at first reading and has not yet passed. The establishment of the DSCC and the imposition of significant penalties underscore the Canadian government’s intent to enhance online safety, particularly for children, through comprehensive regulation of digital platforms and AI chatbots.