The Canadian Radio-television and Telecommunications Commission (“CRTC”) has announced that a Canadian commuter airline has agreed to pay a C$150,000 ($120,162) administrative monetary penalty for failing to fully comply with Canada’s new anti-SPAM legislation (“CASL”). The settlement represents that first time that CASL has address what is considered to be a non-flagrant breach.
The small-haul carrier allegedly sent some commercial e-mails that did not contain an unsubscribe mechanism. In other cases, the unsubscribe mechanism was allegedly not prominent. The airline also allegedly sent some e-mails that did not provide complete contact information as required by the statute and failed to honor within ten (10) business days requests from recipients to unsubscribe from future e-mails. There was also an alleged absence of proof that the airline had obtained consent for each electronic address used in some of the e-mails.
Clearly, partial compliance with CASL is not sufficient. The legislation prohibits all commercial electronic messages that are sent without proper consumer consent, including e-mail, text, social media and image messages. Proof of consent is required for each and every such communication.
The airline agreed to the penalty as part of a broader agreement to bring its commercial e-mail activities into compliance with CASL. It took corrective action immediately after being informed of the investigation.
The undertaking also commits the airline to improve its existing compliance program to ensure that it is fully compliant with CASL. Increased training and education for the airline’s staff and improved corporate policies are required.
The penalties for violating CASL are harsh. Actual damages or statutory damages of $200.00 per each violation, up to a maximum of C$1 million a day for individuals and C$10 million a day for corporate entities. Mitigating factors can include the scope of the violation, the financial benefit obtained and good faith efforts to comply.
U.S. companies are subject to CASL and may be sued domestically, or in Canada.
Any individual or business entity that sends, or assists in sending, a commercial electronic message to a consumer in Canada is subject to CASL. Additionally, any commercial electronic message that is sent from, routed to or accessed from a device in Canada is subject to CASL. Corporate officers, directors and agents may be held personally liable if they directed, authorized or participated in a violation.
This settlement comes on the heels of the CRTC’s issuance of the first CASL Notice of Violation, in March 2015. There, a Canadian corporate training company received a fine for allegedly sending commercial e-mail without opt-in consent or a properly functioning unsubscribe mechanism.
These recent events illustrate that the CRTC is taking an aggressive approach towards CASL violations.
Contact a SPAM defense lawyer if you are interested in implementing comprehensive CASL compliance protocols as a preventative measure, or if your business has received a notice of violation from the CRTC.
Information conveyed in this article is provided for informational purposes only and does not constitute, nor should it be relied upon, as legal advice. No person should act or rely on any information in this article without seeking the advice of an attorney.
