New Anti-Spam Law: Are you aware of how this affects your business?
Canada’s new anti-spam law was passed in December 2010 and will enter into force on July 1, 2014. Once the law is in force, it will help to protect Canadians while ensuring that businesses can continue to compete in the global marketplace.
When the new law is in force, it will generally prohibit the:
- sending of commercial electronic messages without the recipient’s consent (permission), including messages to email addresses and social networking accounts, and text messages sent to a cell phone;
- alteration of transmission data in an electronic message which results in the message being delivered to a different destination without express consent;
- installation of computer programs without the express consent of the owner of the computer system or its agent, such as an authorized employee;
- use of false or misleading representations online in the promotion of products or services;collection of personal information through accessing a computer system in violation of federal law (e.g. the Criminal Code of Canada); and
- collection of electronic addresses by the use of computer programs or the use of such addresses, without permission (address harvesting).
Here’s why you need to be concerned
1. You will need permission to send an email
Canadian Anti-spam Legislation and the corresponding regulations have taken a “ban-all” approach to regulating commercial electronic messages (CEMs), meaning all emails, SMS texts, and some types of social media messages sent in a commercial context are captured by the legislation.
2. You can’t get that permission by sending an email
The legislation will require consent from the receiver prior to sending a CEM. Consent may not be obtained by sending a CEM. The definitions for consent (both implied and express) are prescriptive and have a much higher threshold than under existing privacy legislation.
3. You need to maintain a database that proves you have permission to send these emails
The legislation requires a technology solution opt-out mechanism in all CEMs which must be backstopped with a robust and sophisticated database of all business/personal relationships and removals of consent.
4. Getting it wrong could be expensive – and you/your member businesses could be sued
The administrative penalties for non-compliance are high – up to $1 million for individuals and up to $10 million for corporations. The Canadian Radio-Televisions and Telecommunications Commission (CRTC) is interpreting this as a per infraction cap. There is also provision for private right of action.
Make sure you and your business are protected.
Do your due diligence and read about this new law.
ATTEND the chamber session on June 12 to hear a legal opinion on how this impacts YOU.