CASL – Challenges for Business and Not-for-Profits

Presented to

Lexpert Anti-Spam ProgramBy

Scott SmithDirector, Intellectual Property and Innovation Policy

April 30, 2014

Threats to Competitiveness

• May impede start-up businesses from launching in Canada. • May impede the development of new Internet-based marketing

models. • Could discourage some server operators from operating facilities in

Canada.• Likely that some legitimate and even useful online communication

will be prohibited due to the wide scope of the bill.• Pace of electronic commerce in Canada will stagnate.• Regulatory compliance spending will increase disproportionately.• Puts Canadian companies at a competitive disadvantage globally.

CASL – A Frustration for Business

Several small business people I have talked to, and myself, are nervous and worried about the gravity and potential cost of violations, and there is still

some vagueness in the bill that leaves a fair margin for interpretation.

Furthermore, this is encroaching on our basic freedoms...Reaching out to communicate with someone seems like a basic right, and a basic

human function.

Seems like I can't find someone's email and send them a message about a potential product, service or

opportunity.  That pretty much shuts down commerce in Canada.

CASL Compliance

• Capabilities – Access to resources

• Ambiguities– Navigating the nuances

• Risk tolerance– Drawing a line in the sand

Some business stats:

• Total Employer Businesses – 1,107,540• Another 1 million+ businesses are indeterminate• 98.22% are small business• 1.64% are medium size business• 0.14% are large business• 75% Canadian Businesses have less than 10 employees.• 98% of Canadians have access to broadband

So where’s the problem?

Only 45% of Canadian businesses have an online presence

Some Not-for-Profit stats:

• Business – 5512• Unions – 3403• Social – 20,448• Professional – 2442• Religious – 24,246• Membership – 6398• Vocational – 1707• Political – 350 (oh yeah, they’re exempt)

Ambiguities: The CRTC vs RIAS

• Definition of a CEM• Existing consents• Unsubscribe – only CEMs? Or all service messages? • Unsubscribe and resubscribe – the revolving door – implied vs

express consent• On behalf of – have no role vs. play a material role• On behalf of – seeking consent – identification of third party?• Proof of consent• Record retention• Social Media Sites

Operational compliance - Risk tolerance

• Communications audit• Rely on existing consents vs. acquisition• Database management• Communications protocols – preventing employee error

Thank you!

Questions?