Do Privacy Laws Need More Teeth?

Today's Slaw post. Canada's Privacy Commissioner, Jennifer Stoddart, appeared yesterday before the House of Commons access to information, privacy and ethics committee.

The Commissioner would like PIPEDA to include stronger penalties for privacy violations as an incentive to comply. PIPEDA currently has no financial sanctions. If a violator does not conform to a decision of the Commissioner, the recourse is for the Commissioner to take it to the Federal court, which has powers to order compliance and grant damages.

In part this seems to be driven by "...the apparent disregard that some of these social media companies have shown for Canadian privacy laws."

I'm wondering what readers think about this.

Would the ability to collect financial penalties for PIPEDA violations make a difference?

Does the complexity and newness of social media products make it inherently difficult to get privacy right and create clear and simple privacy policies - or do they just not put enough effort into it upfront?