THE CRTC
The CRTC handles complaints about:
- Sending of Unsolicited Commercial Electronic Messages
- Alterations of Data Transmissions
- Software Installations Without Consent
Since the Canadian Anti-Spam Law came into effect, authorities have sent dozens of notices to companies.
- 40% Targeted SMBs
- 30% NOT Related to Consent
- 30% Targeted B2B Companies
- 20% Related to Promotional Wording
- 10% Targeted Individuals Directly
- 10% Held Administrators Personally Liable
PENALTIES MADE PUBLIC TO DATE
$1,100,000
$48,000
$3,250,000
$150,000
$200,000
$50,000
$60,000
$15,000
$1,150,000
$1,250,000
$15,000
$1,250,000
SANCTIONS
$100,000
$100,000
$150,000
CASL ENFORCEMENT AGENCIES
Enforcement of the Canadian Anti-Spam Act has been entrusted by Parliament to three different regulatory bodies with the power to investigate, obtain warrants and issue fines of up to $10 million.
The following organisations have signed collaborative agreements to conduct joint inquiries, share information from their investigations, and coordinate penalties.
THE COMPETITION BUREAU
The Competition Bureau handles complaints about:
- False or Misleading Representations
- Misleading Digital Marketing Practices
THE PRIVACY COMMISSIONER
The Privacy Commissioner handles complaints about:
- Electronic Data Collection
- Spyware
CASE SELECTION
Cases are selected from several complementary sources:
- From information submitted via the Spam Reporting Centre
- From emails sent to [email protected]
- From information and references from the respective authorities in partner countries (Australia, Korea, New Zealand, the Netherlands, the United Kingdom, etc.)
- From “Honey Pot” traps
- From data flows of specialised organisations
- From various industry collaborations
N.B.: The CRTC refuses to disclose the criteria that leads them to select and prioritise investigations. Additionally, many of their public inquiries included companies that had only generated less than a hundred complaints of the +1 million received. And some of their cases involved companies that appeared to have made bona fide mistakes or had genuine technological problems that affected their CASL compliance.
In light of the penalties imposed, the CRTC gives the impression that they want to create examples of each type of industry, context, and violation. Because of this randomness, it’s impossible at this time to estimate the probability of dealing with an investigation vs. the number of complaints issued.
922 262
complaints as of May 16, 2017
65%
of complaints are about email
+ 100%
increase in SMS complaints
+ 60%
complaints about misleading content
244 724 229
Honey Pot decoy addresses
HOW INVESTIGATIONS ARE HANDLED
When the CTRC begins conducting an investigation, they can send you a request for information that requires you to provide within 30 days, all the data covering the period of the inquiry. The information needed includes:
- The list of all the recipients for all your commercial electronic messages
- The type of consent for each recipient (explicit or implied)
- The date of consent
- All the information held on the person
- A CSV file with the justified information for each consent
- The company’s privacy policy
- Database guidelines for contact management
- Electronic communication policies
- Screenshots of subscription forms
- Etc.
At the end of their investigation, the CRTC sends a notice of violation that details the alleged infractions committed by your business. You then have 30 days to negotiate an agreement whereby you agree voluntarily to pay a “lump sum” and implement a full compliance program under the supervision of the CRTC.
In the absence of an agreement, the CRTC imposes a fine that you can challenge in court if you have the time and resources to do so. Because of the cost and time of such a high-risk challenge, it’s easy to understand why all the companies given notices so far, with the except of one, have negotiated agreements and made voluntary payments.
N.B.: There is no presumption of innocence, a protection that applies to criminal law but not to administrative laws like those investigated by the CRTC. It’s like a ticket given by a policeman to you on the side of the road: you’re guilty and required to pay unless you can prove your innocence or that a mistake was made. Unlike this situation, often resolved in municipal courts with reasonable expenditures and delays, challenges to CASL are long and costly.
THERE IS NO PRESUMPTION OF INNOCENCE
Your only recourse is to challenge the fine in court. A process that can easily last five years, with a minimum cost of $100,000 in fees and expenses.
LEARN MORE ABOUT CANADA’S ANTI-SPAM LAW
CASL OVERVIEW
Find out more about CASL and the regulatory requirements for commercial electronic messages.
A DEFENCE PROVISION
CASL provides a single and unique defence provision for businesses. Find out what it is and how to benefit from it.
YOUR FREE CONSULTATION
If you have questions about your company’s compliance or your email marketing practices, speak with one of our experts.
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