Wales made promising start but Canada secured four-try bonus and led 28-0 at half-time thanks to McKinley Hunt's double and scores by Alysha Corrigan and Asia Hogan-Rochester.
Welsh number eight Georgia Evans yellow-carded for a high tackle in 48th minute, followed by Taylor Perry and Brittany Kassil going over for Canada.
After heavy loss to Scotland in opening match, Wales were nilled and are set for a group-stage exit.
Canada, ranked second in the world, have shown their credentials as challengers for the trophy by cruising past Fiji and Wales.
Live Reporting
Sin-binpublished at 62 mins
62 mins
Canada 42-0 Wales
Image source, Getty Images
Irish television match official (TMO) Leo
Colgan is again keen to be involved and spots a high tackle from replacement Canada prop Olivia DeMerchant who is shown a yellow card.
So Wales and Lleucu George have another chance but while the kick to touch is successful, Wales were held up over the Canada line.
Number eight Gabrielle
Senft had appeared to have scored Canada's fifth try but Ireland's television match official Leo Colgan picked up two incidents.
First of all there was a knock-on by Canada in the build-up but then Wales number eight Georgia Evans is shown a yellow card for a high tackle.
Score remains the same but Wales are down to 14 players.
Canada have been dominant in the scrum and they force Wales to give away an early second-half penalty, while the Welsh lineout continues to malfunction.