Canada’s new anti-spam legislation goes into effect on July 1 and sending unwanted commercial emails or texts could mean huge fines for individuals and businesses that violate the new rules.

A number of Canadians have received an online inquiry recently from a company asking if they are still interested in receiving its emails.

That’s because Canada's Anti-Spam Legislation (CASL) will change how people and companies communicate and collect information and many businesses are now scrambling to secure consent from everyone in their database.

“The smart thing to do right now is to try and firm up expressed consent from everyone in your database,” said Kelly Nicholson from Field Law.

Once CASL comes into effect, sending unwanted commercial emails, or texts could mean huge fines.

“Up to a million dollars for an individual or 10 million dollars for a corporation,” said Nicholson.

Spam laws in most other countries are "opt out", which means unsolicited emails are legal if there's a way to unsubscribe but Canada’s law is different and consumers have to opt in before a company can contact them.

“Businesses really struggle, almost in near panic mode to try and figure out how to navigate through this complex law,” said Martin Kratz from Bennet Jones .

A lot of companies rely on bulk messaging and the new rules are forcing many to take a scalpel to their mailing lists.

Consumers are wondering if the anti-spam legislation will unclutter their inboxes and Kratz says the answer to that is unclear. “Most of the messages I receive appear to be foreign based messages and it's unclear to me if the law will have any effect on slowing down or stopping those messages.”

The Better Business Bureau has some advice for individuals and businesses that use email, social media or text messaging as marketing and communications tools and says even though the new legislation requires preparation, the benefits will be worthwhile.

"The CASL requirements will help promote an ethical and trustworthy marketplace," said Sandra Crozier-McKee, president and CEO of BBB Serving Southern Alberta and East Kootenay "Obtaining proper consent and honestly representing products and services paves a smooth road to marketplace trust."

The new CASL law will prohibit:

  • Sending messages without permission. Sending of CEMs without the recipient's permission, including emails and messages to social networking   accounts and text messages
  • Delivering data to a different destination than the original, intended address. Alteration of transmission data in an electronic message,which results in the message being delivered to a different destination without express consent.(A process common  in phishing scams)
  • Installing software without consent. Installation of computer programs without the express consent of the owner of the computer system or its agent, such as an authorized employee
  • False advertising. Use of false or misleading representation in the online promotion of products or services.
  • Illegal collection of data. Collection of personal information through accessing a computer system  in violation of federal law  (e.g. the Criminal Code of Canada)
  • Address harvesting. Collection of electronic addresses by the use of computer programs or the use of such addresses, without permission

BBB tips for preparing yourself or your business for implementation of CASL:

  • Review the legislation in detail. Visit fightspam.gc.ca for an in-depth look at the CASL and its implementations
  • Review your processes for sending out emails, text messages and social media posts. Who are you sending messages to? Do any of your messages encourage participation in ac commercial activity such as buying a product or service, taking part in a work shop or class or becoming a paying member?
  • Get consent. Do you have proper consent for the people you are currently sending information to? For the people you plan to send future messages to, do you have the proper systems in place to acquire consent? Anyone you are  sending a CEM to must have agreed to receive such communications from you
  • Include an "unsubscribe" option. Make sure it is easy for people to unsubscribe or opt-out of receiving CEMs from you or your business.
  • Carefully review your recent and future CEMs to make sure you are not unintentionally being misleading in the representation of your products or services. If you are a BBB Accredited Business, be sure to review our BBB Code of Advertising.
  • Make sure everyone understands. Ensure all of your staff understand the requirements of the new legislation and are properly trained to follow new procedures.
  • Stay informed.You can sign up for updates related to CASL at  fightspam.gc.ca.

The financial penalties for failing to meet the CASL requirements are as high as $1 million for individuals and up to $10 million for businesses.