By Richard Larson
If your business sends commercial electronic messages to Canada, take note. Canada’s Anti-
Spam Legislation (CASL), a new law governing email communications, goes into effect today, July 1, and applies to businesses, organizations, and individuals — even if they are not based in Canada.
While this article will focus on how the new law affects commercial email, it is important to note that it also applies to other electronic threats to commerce, such as the installation of computer programs and the alteration of transmission data without express consent. These threats also include the installation of malware, such as computer viruses, and would also apply to shopping downloads, browser downloads, etc. In addition, the law also applies to instant messages, text messages, and any other electronic correspondence.
Opt-In Vs. Opt-Out
CASL is making news because it is much more stringent than current regulations, including the U.S.’s CAN-SPAM Act. The main difference between CASL and CAN-SPAM is CASL is an opt-in law while CAN-SPAM is an opt-out law. This means that starting today you must have express consent to send commercial emails. And needing consent applies to the current subscribers on your list — even if you have emailed these people before. Now, you will need to provide proof that you have received their express consent in order to continue communicating with them via email or other digital methods.
According to the law, there are three requirements for sending commercial email messages electronically: 1. consent; 2. identification information; and 3. an unsubscribe mechanism. Auto-checked sign-up boxes, and inaction or silence no longer constitute consent. That means you cannot continue to send emails to Canadian addresses obtained from auto-checked boxes unless you obtain consent. It also means that even if you inform someone via email that they have become a subscriber and offer them the opportunity to unsubscribe, inaction is no longer considered consent.
Implied Consent Exceptions
There are a few exceptions, however, that can give your business or organization implied consent to send electronic communications:
- If you have done business with the recipient within the previous two years — the recipient has purchased a product, accepted a business deal, or entered into a written contract or membership with your organization — then you can send communications. In order to continue sending emails, you must get consent before the 24-month period expires.
- If you are a registered charity or political organization that has received a donation or gift from the recipient, or they have volunteered for or attended a meeting organized by your organization, then you may send electronic communications.
- If you have sent emails in a professional or official capacity, and the recipient has not told you they did not want to receive unsolicited messages, this is considered implied consent.
Penalties for the CASL?
If you commit a violation under the new law, you can be required to pay an administrative monetary penalty (AMP). The penalty for individuals is up to $1 million, and for businesses the maximum penalty is $10 million. The actual amount of the AMP fine is determined by a list of factors set out by the CASL. The penalties can apply to directors, officers, agents, and mandataries of a corporation if they authorized, assented to, acquiesced in, or participated in the commission of the violation.
The majority of these laws begin enforcement on July 1, 2014; however, the sections of the law that deal with sending commercial electronic messages and installation of computer programs begin January 15, 2015, and the sections that relate to the private right of action of recipients come into enforcement on July 1, 2017. This will give companies time to work on obtaining permissions in the way that the express consent details are outlined.
The post What Your Business Must Know About Canada’s New Anti-Spam Law — No Matter What Country You’re In appeared first on AllBusiness.com
The post What Your Business Must Know About Canada’s New Anti-Spam Law — No Matter What Country You’re In appeared first on AllBusiness.com.