CASL 'Private Right Of Action' Deadline Nears

Email marketers have a little over two weeks to ensure they are compliant with the Canadian Anti-Spam Legislation (CASL), or face fines of up to $10 million.

CASL first went into effect on July 1, 2014, but the legislation had a three-year transition period. During this time, only the Canadian Radio-Television and Telecommunications Commission (CRTC), the Competition Bureau, and the Office of the Privacy Commissioner of Canada could litigate against companies and organizations that were not CASL-compliant. 

Beginning on July 1, 2017, CASL’s “private right of action” rule will be codified, meaning that any consumer can sue any company they believe is sending unsolicited email. Fines can range between $1 and $10 million per each violation, and civil and criminal responsibility extends beyond the email manager into executive offices and the boardroom. The law impacts any organization sending electronic communication to subscribers in Canada, regardless of country of origin.

Business law and litigation firm Fasken Martineau recently partnered with the Direct Marketing Association of Canada (DMAC) to survey 200 professionals around their email marketing activities and CASL compliance. The results of the 2017 CASL Survey Report suggests a majority of organizations are unaware of the extreme financial implications of not complying with CASL.  

Sixty-three percent of respondents were unaware that the CRTC can impose an administrative monetary penalty of up to $10 million for each CASL violation, and 60% of respondents indicated their organization does not audit for CASL compliance. Furthermore, 30% were unaware that directors could be personally liable for CASL violations by their organization and 46% were unaware that an organization could be liable for statutory damages under CASL. 

Canada has a far stricter anti-spam policy than the United States, so email marketers cannot simply adopt their U.S. CAN-SPAM Act policies in Canadian campaigns. The CRTC offers a guide to CASL compliance available online.  

Considering the nuances of the legislation, it might be advisable for companies to consider turning to a third party to help with their email compliance.

Email delivery platforms SendGrid and SparkPost both offer CASL help, and the Alliance for Audited Media recently launched two new services to help companies comply with CASL. 

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