It seems everyone’s favorite cross-platform Instant Messaging app has is violating Canadian privacy laws (according to the Office of the Privacy Commissioner of Canada). The OPC found that on all devices (except IOS 6), the App requires access to the users address book to function. This means that non WhatsApp user information is being stored on the WhatsApp servers without the permission of these users.
WhatsApp is “trying to meet” Canadian regulations by adding encryption and other protections but the OPC believes they are not yet compliant with Canadian law and will continue monitoring the firms progress. Their official monitoring statement says:
"Under Canada’s PIPEDA, the OPC will monitor the company’s progress in meeting commitments made in the course of investigation. In most cases, companies are cooperative in meeting their obligations, and WhatsApp has demonstrated a willingness to fully comply with the OPC’s recommendations."
You can read the the official report fropm the Office of the Privacy Commissioner of Canada here.