Legal Liability in Private Investigations: Why Professional Judgement Matters

A private investigator follows a subject during surveillance. An investigator approaches someone for information. A client requests evidence that could require accessing private records or entering restricted property.

Each situation involves decisions that can have serious legal consequences.

Private investigators are hired to gather information, establish facts, and support clients in making informed decisions. However, the responsibility to investigate does not provide unlimited authority to access information, follow individuals, or interfere with their rights.

In Ontario, licensed private investigators must operate within the law while maintaining professional and ethical standards.

An unlawful search, inappropriate surveillance method, discriminatory interaction or improper handling of personal information can expose investigators and their employers to complaints, civil liability, regulatory consequences and reputational damage.

Two recent Canadian legal developments involving private security personnel demonstrate how quickly professional decisions can become serious legal matters.

Although the cases involve security guards rather than private investigators, the underlying lessons about legal authority, accountability and professional conduct are highly relevant to investigative work.

When Professional Decisions Lead to Legal Consequences

Private investigators and security guards perform different roles, but both operate within legal boundaries and interact with members of the public.

Understanding those boundaries is essential.

Metrotown Mall: A $1.8 Million Lesson in Exceeding Legal Authority

In 2019, security guards at Metropolis at Metrotown in Burnaby, British Columbia, confronted a young person they believed had previously been banned from the property.

The encounter escalated into an unlawful arrest, physical assault and detention.

According to the court proceedings, the guards pushed the individual down a set of stairs, detained them in a locked room and denied access to a telephone.

The defendants admitted liability for assault, false arrest and false imprisonment.

In April 2026, a British Columbia court awarded approximately $1.8 million in damages, including $1 million in punitive damages against Paladin Security.

The court also criticized the company’s handling of the incident, including failures to properly investigate and respond to the misconduct.

Although the case involved security guards, it highlights a principle that applies directly to private investigators:

Being hired to perform a professional service does not provide authority to act outside the law.

Private investigators must understand the limitations of their role, regardless of what a client wants them to accomplish.

Canadian Tire: The Consequences of Discriminatory Conduct

A separate incident at a Canadian Tire store in Coquitlam, British Columbia, involved Richard and Dawn Wilson, a father and daughter from the Heiltsuk Nation.

In January 2020, the pair were shopping while waiting for vehicle service.

During checkout, a security guard employed by Blackbird Security singled out Richard Wilson for a backpack search.

When Dawn Wilson questioned the treatment, a store employee responded with racist remarks.

The Wilsons subsequently pursued a human rights complaint.

In May 2026, the matter was resolved through a settlement.

As part of the agreement, Blackbird Security acknowledged that its former employee had violated British Columbia’s Human Rights Code through racial profiling and discrimination.

The store acknowledged derogatory remarks made by a former employee, while Canadian Tire Corporation acknowledged shortcomings in how the complaint was forwarded.

The settlement included confidential financial compensation, additional training, improved complaint-handling procedures and commitments to objective, race-neutral loss-prevention practices.

The settlement was not a tribunal ruling following a full hearing, but it included significant acknowledgements and organizational commitments.

For private investigators, the case reinforces the importance of conducting work objectively, treating people fairly and avoiding assumptions based on personal characteristics.

Understanding the Legal Responsibilities of Ontario Private Investigators

Private investigators in Ontario operate within a legal framework that governs licensing, professional conduct, and investigative activities.

One of the most important distinctions aspiring investigators must understand is that a private investigator licence does not provide police powers.

The Private Security and Investigative Services Act, 2005

Ontario’s Private Security and Investigative Services Act, 2005 (PSISA) establishes the provincial framework for licensing and regulating private investigators and security guards.

Private investigators must meet applicable licensing requirements and comply with the legislation and its regulations.

The regulatory framework includes standards relating to professional conduct and the responsibilities of licensed individuals.

However, holding a private investigator licence does not give someone unrestricted authority to gather information or interfere with another person’s rights.

The Criminal Code of Canada

The Criminal Code contains provisions that may be relevant to investigative activities, including offences involving unauthorized access to computer systems, interception of private communications, harassment and other prohibited conduct.

Private investigators must ensure that their investigative methods comply with applicable criminal law.

For example, being hired to investigate a person’s activities does not automatically authorize an investigator to access their private accounts, intercept communications or engage in conduct that would otherwise be unlawful.

Privacy Legislation

Depending on the circumstances, private investigators may also have responsibilities under federal or provincial privacy legislation.

The Personal Information Protection and Electronic Documents Act (PIPEDA) can apply to the collection, use and disclosure of personal information in certain commercial activities.

Other privacy requirements may apply depending on the organization, information involved, and nature of the investigation.

Investigators should understand which privacy rules govern their assignments and ensure that information is collected, stored, used and disclosed lawfully.

The Ontario Human Rights Code

Private investigators must also be aware of human rights obligations where applicable to their activities and services.

Professional decisions should be based on relevant facts and legitimate investigative objectives rather than discriminatory assumptions.

Fairness, objectivity and respect for individuals are essential to credible investigative work.

Five Investigative Decisions That Can Create Legal Liability

Many legal risks in private investigations arise from decisions that may initially seem routine.

Understanding these risks can help investigators recognize when a client’s request or an investigative method requires closer examination.

1. Conducting Surveillance Without Understanding Legal Boundaries

Surveillance is a common investigative technique.

Private investigators may be hired to observe an individual’s activities in connection with insurance matters, workplace investigations, civil disputes or other legitimate assignments.

However, surveillance must be conducted lawfully.

Imagine an investigator is assigned to observe a subject who lives in a residential neighbourhood.

The investigator may be able to observe activities visible from a lawful public location.

But what happens if the subject enters a private residence or another location where they have a reasonable expectation of privacy?

The investigator cannot assume that the assignment provides permission to enter restricted areas or use intrusive methods.

Potential legal concerns may arise from:

• Trespassing onto private property.
• Recording private communications unlawfully.
• Engaging in conduct that amounts to criminal harassment.
• Using surveillance methods that intrude on legally protected privacy interests.
• Collecting or disclosing personal information without a lawful basis.

Investigators must assess the legality of their methods before proceeding.

The lesson: A legitimate investigative objective does not automatically make every surveillance technique lawful.

2. Accessing Information Without Proper Authorization

Private investigators are frequently asked to locate information about individuals, businesses or events.

However, there is an important difference between gathering information through lawful sources and obtaining information through unauthorized access.

Imagine a client asks an investigator to obtain a former employee’s private emails or financial records.

The client may believe the information would help resolve a dispute.

But the investigator must independently assess whether obtaining that information would be lawful.

Potentially problematic methods include:

• Accessing password-protected accounts without authorization.
• Obtaining confidential records through misrepresentation or unlawful means.
• Intercepting private communications.
• Using another person’s credentials without proper authority.
• Circumventing security measures to obtain information.

Investigators should use lawful information-gathering methods and understand the privacy and confidentiality requirements associated with their work.

Client permission alone does not necessarily authorize access to information belonging to someone else.

3. Allowing Bias to Influence an Investigation

Private investigators are expected to gather information objectively.

However, personal assumptions can influence how evidence is interpreted, which leads are pursued and how individuals are treated.

Consider an investigator conducting a workplace investigation.

If the investigator assumes that one employee is responsible before reviewing the available evidence, that assumption may affect the entire process.

Similarly, decisions based on stereotypes about race, ethnicity, religion, gender or other personal characteristics can create serious professional and legal concerns.

The Canadian Tire case demonstrates the consequences that can arise when professional actions are influenced by discriminatory treatment.

Private investigators should:

• Approach assignments with an open mind.
• Distinguish facts from assumptions.
• Consider information that supports or contradicts an allegation.
• Apply investigative procedures consistently.
• Document the basis for important decisions.
• Avoid discriminatory conduct.

An investigator’s credibility depends on the ability to gather and present information fairly.

4. Misrepresenting Authority During Interviews

Interviews and information gathering are important parts of many private investigations.

However, investigators must understand the limits of their authority when speaking with witnesses, subjects or other individuals.

Imagine a private investigator approaches someone who may have information relevant to an assignment.

The person refuses to answer questions.

The investigator cannot assume that their professional role gives them authority to compel cooperation.

Private investigators do not have the general investigative powers of police officers.

They must avoid falsely presenting themselves as law enforcement or implying that someone is legally required to cooperate when that is not the case.

Professional interviewing should involve:

• Communicating respectfully.
• Avoiding threats or intimidation.
• Being truthful about legal authority.
• Following applicable identification and disclosure requirements.
• Respecting an individual’s decision not to participate.
• Accurately documenting information obtained.

An investigator may be persistent in pursuing lawful information, but persistence must not become harassment or coercion.

5. Mishandling Evidence or Personal Information

Collecting information is only one part of an investigation.

Investigators must also consider how that information is recorded, stored, protected and shared.

An investigator may obtain photographs, video recordings, witness statements, documents or other materials during an assignment.

If those materials are handled carelessly, the consequences can extend beyond the investigation itself.

Potential problems include:

• Losing sensitive records.
• Sharing personal information with unauthorized individuals.
• Altering or inaccurately describing evidence.
• Failing to maintain appropriate documentation.
• Drawing conclusions unsupported by the evidence.
• Disclosing information beyond what is legally permitted.

Investigators should follow applicable privacy laws, professional standards and organizational procedures.

Maintaining accurate records and protecting sensitive information are essential parts of professional investigative work.

Why Client Instructions Don’t Override the Law

Private investigators often work on behalf of individuals, businesses, insurers, legal professionals and other organizations.

Clients may have strong reasons for wanting information.

However, a client’s objectives do not determine what investigative methods are lawful.

For example, a client may request that an investigator:

• Enter private property without permission.
• Access another person’s online accounts.
• Record private conversations.
• Obtain confidential records through unauthorized means.
• Continue following someone despite concerns about harassment.

An investigator must independently assess whether the requested conduct is lawful.

If a client requests something outside the investigator’s legal authority, the appropriate response is to explain the limitation and consider lawful alternatives.

This is an important professional responsibility.

The Metrotown case demonstrates how exceeding legal authority can result in serious consequences, while the Canadian Tire settlement reinforces the importance of ethical conduct and organizational accountability.

Private investigators should never assume that an employer or client’s instructions protect them from responsibility for their own actions.

The Importance of Accurate and Objective Reporting

Private investigators are often hired because their findings may influence important decisions.

An investigative report might be reviewed by an employer, insurer, lawyer or other authorized party.

In some circumstances, the investigator may also be asked to explain their observations or methods in legal proceedings.

This makes accurate documentation especially important.

A professional investigative report should clearly distinguish:

• Direct observations.
• Information provided by witnesses or other sources.
• Documentary evidence.
• Reasonable inferences.
• Matters that remain unverified.

For example, instead of writing:

“The subject was clearly attempting to hide their activities.”

An objective report might state:

“The subject exited the building at approximately 2:15 p.m., looked in both directions and entered a vehicle parked on the opposite side of the street.”

The second statement describes observable behaviour without assigning an unsupported motive.

Private investigators should avoid exaggerating findings or presenting assumptions as established facts.

Credible reporting depends on accuracy, consistency and transparency about what the evidence does and does not establish.

How Legal Mistakes Can Affect Investigators and Their Employers

When investigative conduct results in complaints or legal proceedings, the consequences may extend beyond the individual investigator.

Individual Investigators

Depending on the circumstances, investigators may face:

• Criminal charges.
• Civil claims.
• Regulatory complaints.
• Licensing consequences.
• Employment or contractual consequences.
• Reputational damage.

Investigation Agencies

Agencies may face legal exposure relating to employee conduct, inadequate supervision, deficient policies or failures to address misconduct.

Organizations should establish clear procedures for lawful information gathering, privacy protection, reporting and complaint handling.

Clients

Clients may also face legal risks when their own instructions, actions or involvement contribute to unlawful investigative conduct.

Hiring a professional investigator does not automatically eliminate responsibility for a client’s own decisions.

The nature and extent of any liability depends on the circumstances and applicable law.

Why Proper Private Investigator Training Matters

Private investigation requires more than curiosity, observation skills, or the ability to follow a subject.

Investigators must understand the laws governing their work and apply professional judgement throughout an assignment.

In Ontario, individuals seeking a private investigator licence must complete the required basic training and pass the provincial licensing test, along with meeting other applicable licensing requirements.

Ontario’s basic private investigator training program consists of 50 hours.

The curriculum introduces aspiring investigators to important areas such as:

• Legal responsibilities and limitations.
• Professional conduct and ethics.
• Investigative techniques.
• Surveillance.
• Interviewing.
• Report writing.
• Evidence handling.
• Privacy and confidentiality.

These topics are directly relevant to the legal risks investigators may encounter.

For example, understanding privacy law can help prevent unlawful information collection.

Training in surveillance techniques can help investigators recognize legal boundaries.

Interviewing and report-writing skills can support accurate, professional information gathering.

And understanding the limits of investigative authority can help prevent decisions that lead to complaints or lawsuits.

Training cannot eliminate every risk, but it provides an essential foundation for responsible investigative work.

Professional Investigations Begin With Sound Judgement

The Metrotown Mall and Canadian Tire incidents involved security guards, but the broader lessons extend to private investigation.

Professional responsibilities must always be exercised within legal boundaries.

Poor judgement can lead to serious consequences.

Discriminatory treatment can cause lasting harm.

And inadequate organizational oversight can create additional legal and reputational risks.

For Ontario private investigators, the most important principles are straightforward:

• Understand the limits of your legal authority.
• Use lawful investigative methods.
• Respect privacy and confidentiality.
• Gather information objectively and without bias.
• Avoid misrepresenting your authority.
• Document findings accurately.
• Recognize when a client’s request crosses a legal boundary.

At Ontario Private Investigator License, we help aspiring investigators prepare for careers in Ontario’s private investigation industry through accessible online training.

Whether you’re exploring a new career or preparing to complete your licensing requirements, developing a strong understanding of legal responsibilities is an essential first step.

Because a successful investigation isn’t just about finding information. It’s about knowing how to obtain it legally, ethically, and professionally.

Learn more about Ontario private investigator training at OntarioPrivateInvestigatorLicense.com.

References

• The Canadian Press. (2026, April 23). B.C. court awards $1.8M in damages for assault, wrongful arrest by Metrotown guards. Global News. https://globalnews.ca/news/11813664/metrotown-guards-arrests-damages/
• Joannou, A., & Greer, D. (2026, May 19). Washing ceremony marks settlement of Canadian Tire racial profiling complaint. The Canadian Press, via CityNews. https://vancouver.citynews.ca/2026/05/19/washing-ceremony-marks-settlement-of-canadian-tire-racial-profiling-complaint/
• Government of Ontario. Private investigator basic training. https://www.ontario.ca/page/security-guard-and-private-investigator-basic-training
• Government of Ontario. Private Security and Investigative Services Act, 2005. https://www.ontario.ca/laws/statute/05p34
• Government of Canada. Criminal Code. https://laws-lois.justice.gc.ca/eng/acts/C-46/
• Office of the Privacy Commissioner of Canada. Personal Information Protection and Electronic Documents Act (PIPEDA). https://www.priv.gc.ca/en/privacy-topics/privacy-laws-in-canada/the-personal-information-protection-and-electronic-documents-act-pipeda/