Ontario Business Corporations Act

Canada’s new anti-spam law Effective July 1, 2014

Posted on by Behdad Hosseini
anti-spam law

Canada’s new anti-spam law

What you need to know about Canada’s new anti-spam law?

Starting July 1, 2014, CASL (Canada’s Anti-Spam Law) imposed substantial regulatory obligations on those sending commercial emails.

Things to know:

  • CASL creates director’s liability for organizational offenses.
  •  A commercial electronic message is any message sent by any means of telecommunication, such as voice, text or image that seeks to promote a business relationship.
  • Sending commercial electronic messages and installing of computer programs is prohibited under this law, unless the recipient has consented to receiving this message or under certain exceptions.

 

How will CASL affect your business?

CASL essentially limits a business’s ability to communicate electronically with their customers or prospective customers unless a prior consent is obtained from the recipient or if an exemption applies. This consent may be implied or expressed.

CASL also will regulate companies and businesses that are involved in the transmission or alteration of data or who produce or install computer programs.

CASL imposes fines up to $10,000,000 for organizations and up to $1,000,000 for individuals who violate this law. Also imposed is a private right of action which allows for compensation up to a maximum of $1,000,000 per day of violation.

Ultimately CASL does not prohibit you as a business owner to send marketing messages. However it sets out requirements for sending certain types of messages, called a commercial electronic message (CEM).

If you are sending a CEM to an electronic address, then the following 3 requirements have to be met. You need to:

  1.  Obtain consent
  2.  Provide identification information: The name of the person sending the message, and identify on whose behalf the message is sent. This must include contact information of sender (email, phone number, or mailing address)
  3. Provide an unsubscribe mechanism, at no cost

Overall this may benefit your business as the amount of spam received will decrease over time, which can result in more attention paid to your commercial electronic messages.

For more information on CASL, please visit:

http://fightspam.gc.ca

For information on Business Incorporation or to book a consultation at our Law office:

http://www.hosseinilaw.com/why-incorporate-your-business/

 

 


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