Marie-Sophie is the owner of Tixe-one of Canada's most exclusive online luxury stores for women. Paul is the vice-president in charge of online security, and he has retained you to provide legal advice. In the past six months, Tixe has been attacked by hackers on two occasions. Before this, the system had never been hacked before. While the hacking attacks diverted some staff and technology resources for a short time, the Tixe online operations were not affected and no business was lost. Marie-Sophie is very concerned about the attacks, however, and has instructed Paul to ensure that the situation does not reoccur.

You are aware that vulnerabilities in Tixe's online ordering system likely contributed to the fact that the attacks were not stopped at an earlier stage. You also know that although those vulnerabilities could be fixed and would stop the hackers, the fix would be expensive and might slow down overall system performance. Paul thinks he has a better solution; he wants to catch the hackers in the act by installing a key-logging program on the computer of every user who visits the Tixe website. This program would be invisible to all but the most sophisticated computer users, and it would keep track of every key that users press on their computers. That information would be relayed back to Tixe, where Paul could monitor it for suspicious patterns or activities. Paul thinks this is a real win-win solution because the hackers would be caught and Tixe could also use the information it gathers for marketing or other purposes. Your job is to advise Paul about whether his proposed solution is acceptable for the company from a legal perspective in light of Tixe's obligations under PIPEDA. Do you think there are problems with his system from a privacy perspective? If so, how might those problems be addressed?