From Reuters (via ZDNet News):
Canada’s privacy commissioner told Google in August that the feature–which offers a series of panoramic, 360-degree images of nine U.S. cities–could violate Canadian laws if it were introduced without alterations.
Some of the pictures feature people who can clearly be identified, which contravenes Canadian legislation on privacy.
“We are thinking about launching it outside the United States, including Canada, and we’re looking at how it would have to be different in Canada compared to its U.S. version,” said Peter Fleischer, Google’s global privacy counsel.
“We would launch Street View in Canada in keeping with the principles and requirements of Canadian law … that means we know we’ll have to focus on finding ways to make sure that individual’s faces are not identifiable in pictures taken in Canada and that license plate numbers are not identifiable in Canada,” he told Reuters in an interview.