Are you ready for the new law? You had better be
There is a significant change coming to Canada’s legal landscape that you need to be aware of.
Commonly referred to as “Canadian anti-spam legislation”, or “CASL” this new law amends the Competition Act to prohibit false or misleading claims and representations in electronic communications: in emails; URLs; websites; text messages; chats; social media channels; and online forums. In other words, in any form of electronic communication.
Chances are you are familiar with the U.S. anti-spam law, the CAN-SPAM Act of 2003. This new Canadian law is considerably more onerous. Don’t assume that practices that are in compliance with the existing U.S. regulations will keep you on the right side of this new Canadian law. This new law will give Canada the distinction of having one of the most stringent pieces of anti-spam legislation in place anywhere in the world.
CASL extends well beyond what most of us would consider to be spam. In fact, much of what Canadian business would consider normal electronic communications (both marketing-focused communications and more general electronic messages) can present significant risks and liabilities relative to the new regulation.
And in case we don’t have your attention yet, note that the penalties attached to violation of the new law are severe: up to $1 million for individuals and $10 million for organizations. CASL also creates a private right of action that allows an individual to take civil actions against anyone who violates CASL. Potential remedies to such a civil action can be as much as a $1 million per day.
A document by a major Canadian law firm analyzing the CASL makes it clear that organizations that send out communications must have a detailed understanding of their businesses practices. Officers and directors can be held liable “if they directed, authorized, acquiesced in or participated in the offending conduct.”
I have been a board member of Magazines Canada for a number of years. Magazines Canada is the industry trade association representing both consumer and business-to-business magazines (like Canadian auto dealer).
It’s been my privilege to help shape the lobby effort and communications we have had with the federal government. We continue to have grave concerns about the impact this new law will have on publishers, and in fact all Canadian businesses.
It is particularly tricky that this new rule is hitting at a time when so many dealers are making significant investments in scaling up their digital marketing efforts by adding things like social media, chat and re-targeting to their marketing toolbox.
We certainly encourage you to learn everything you can about the rapidly emerging and evolving area of digital marketing.
But as part of that, let me stress the need to consider all these new tools in the context of CASL. Don’t expect vendors to be experts in a law that is only about to hit, particularly if they are U.S.-based firms used to selling to dealers who don’t operate under comparable legislation.
Contact your legal advisers, and do some reading. An Internet search of: “Canadian anti-spam legislation” and this link are good places to start: http://www.ic.gc.ca/eic/site/ecic-ceac.nsf/eng/gv00521.html
