Neil LimOn September 10, 2013, the Canadian Chamber of Commerce met with Hon. James Moore, Minister of Industry to talk about the new Canadian Anti-Spam Legislation (CASL), otherwise known as Bill C-28.
The discussion covered the implications of the CASL for businesses, it’s impact on marketers and costs on businesses.
What is the Canadian Anti-Spam Legislation?
For those that have not heard of the CASL (otherwise known as Bill C-28), it was originally drafted with the intent of eliminating the growing threat of spam and malware, and give people more control over the type of messages and correspondence they receive.
However, the legislation’s scope had also come to cover how businesses send messages to customers by making it illegal to send any form of Commercial Electronic Messages (CEM) to customers.
Furthermore, businesses also needed to secure the expressed consent of customers to receive messages and also provide them with an easy way to unsubscribe from future messages.
In addition to CEMs, it will also be illegal for businesses to install software onto their customers’ computers without their expressed consent.
Businesses that fail to comply with the new rules, are subject to hefty fines that can reach up to $10 million, depending on the severity of the violation.
To read past articles on the CASL, visit Bill C-28 and the New Anti-Spam Legislation.
Issues with, and the Ambiguity of the CASL
While the CASL has been passed for over 2 years, it is not being enforced due to the ambiguity of some terms and regulations.
Some of these issues are:
- A clear definition of what CEMs are. It was originally assumed that these are advertising messages, newsletters, promotional updates, etc. but Industry Canada has yet to provide a clear definition of what these are.
- How the CASL covers the rapid advancement of technology, especially with the Cloud, apps and our mobile devices. Social media is becoming such an integral part of how businesses communicate with their customers, and the CASL will need to provide clarity on this medium.
- The geographic scope of the CASL and it’s application to businesses that send CEMs to companies outside of Canada’s jurisdiction.
- What the exemptions are and how the new rules it affects existing relationships between businesses and customers.
- The lack of certainty and clarity to the rules and regulations, in a way, freezes the ability of businesses to comply with the rules. With the amount of ambiguity, businesses are hesitant to invest on resources on rules that may be changed during the next consultation period.
Impact on Businesses
Because of the new regulations that will be enforced by the CASL, businesses will need to invest significantly on compliance efforts to avoid fines and sanctions.
Businesses will also have to review all existing email lists and ensure that consent from customers have been acquired before you can send them commercial messages.
For new customers, businesses will have to secure consent through an opt-in form to ensure compliance with the CASL.
Related Articles:
The Canadian Chamber Discusses Anti-Spam Legislation with Industry Minister James Moore
Don’t Get Tripped Up by the New Anti-Spam Law