CASL in Full Effect as Fines Issued

posted in: Case Law | 0

caslWith Canada’s anti-spam legislation or CASL set to come into force, most businesses will find it challenging to send commercial electronic messages to customers and potential clients. Violation of such could bring along significant amount of fines that could reach into millions.

These days, it is a common practice for a business to connect with their customers and prospects via digital messaging channels such as email, social media, and other computer programs that alter data during transmission. But if there is any commercial activity being tied to the message, it can be considered a commercial electronic message (CEM) under CASL. In other words, any digital message that was sent to any electronic address like email address, text message, or social media account that promotes or advertises a product, business, person, event, or investment would violate the CASL.

Take the case of Porter Airlines Inc. According to the investigation of Chief Compliance and Enforcement Officer, this company sent some commercial electronic messages on its own behalf during the inclusive dates of July 1, 2014 to April 16, 2015. It contained an unsubscribe mechanism that was not set out ‘clearly and prominently,’did not provide complete identification information, or that were missing an unsubscribe mechanism. The said company also failed to provide proof of consent for some of the email addresses to which it sent commercial electronic messages. Aside from the monetary payment, Porter Airlines Inc. also agreed to update and implement its compliance program. Moreover, it brought its mailing list into compliance with the legislation.

This case against Porter Airlines is a great example that businesses and organizations need to be legally CASL compliant. Also, they should have enough evidence to provide proof of consents as defined in the Act and the Regulations, proper training of employees, and binding vendors and subcontractors to CASL obligations.

If you are doing business or marketing in Canada, you can consult the MT Alfano Enterprises to help you minimize your risks for CASL non-compliance. We do that by reviewing and providing advice about your business agreements, practices, employee training, and CASL policies. Moreover, we can help you in negotiating proper contract terms in order to protect you from violations caused by your suppliers or subcontractors.

Helping you understand what’s in your pocket…

Until next time

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