New Canadian Anti-Spam Legislation Stops Businesses from ‘Phishing’
     for New Customers

Canadian consumers and businesses will soon realize a new opportunity to boost their confidence in online commerce by protecting the privacy and personal security concerns that are associated with spam, counterfeit websites and spyware.  With the most recent introduction of Bill C-27, the Electronic Commerce Protection Act (ECPA), any company that relies on the Internet as a key vehicle to reach clientele will have to make significant changes to their outreach processes before soliciting new and current customers.

Anti-Spam Action Plan
Spam has become big business around the world with Canada being seen as the haven for spammers – or those who send out unsolicited information.  According to the Canadian Association of Internet Providers (CAIP) more than 97% of all email is considered to be Spam.  In April, Internet security firm Symantec reported that the volume of spam worldwide increased 192 per cent in 2008, from 119.6 billion messages in 2007 to 349.6 billion in 2008.  This growth continues to be a danger to consumers.

This increase in spam is felt around the world and governments globally are trying to pass laws preventing this illegal distribution of information.  Some laws have met with success in cutting back the amount of spam and others continue working diligently to reduce the amount of unsolicited material distributed.

In April 2009, the Canadian government introduced the ECPA to help crack down on those who send unsolicited and potentially harmful emails and cell phone text messages.  This new legislation, when passed, would give the government more power to prosecute spammers and help to protect consumers and businesses.  Bill C-27 looks to deter the most dangerous forms of spam, such as identity theft, phishing and spyware, and is designed to help drive spammers out of Canada.

The act would give the Canadian Radio-Television and Telecommunications Commission (CRTC), which regulates Internet and wireless providers, and the federal Competition Bureau, the right to charge Canadian-based senders of malware, or malicious software, with breaking the law and face up to $10 million in fines for an organization or $1 million for an individual.

The proposed act also gives businesses and consumers the right to sue Canadian-based senders of malware.

Understanding Electronic Commerce Protection Act (ECPA)
For businesses that rely on the Internet and email as one of their key forms of communicating with clients, whether in soliciting new clients or keeping current clients up to date on products or services, the passage of this Bill will have a direct impact on how business is done in the future. The approach of the ECPA requires businesses to request permission from the recipient to receive information via an ‘opt-in’ box.  In addition, businesses that send out information need to build in a layer of technology that identifies them to the recipients, that is, there needs to be a clear indication of who is sending the email  Overall, the Bill requires Canadian businesses using email for mass communication to be more open about who they are and places more restrictions on who they can target. 

In summary the act states that:

• No one in Canada can send or cause to be sent a commercial message to an electronic address unless the receiver has consented.  A commercial message is defined as one whose content or hyperlinks include offers to sell, barter or lease goods and products, or promotes a person who offers to sell things;
• The message has to identify who sent it or on whose behalf it was sent, with contact information valid for 60 days;
• Messages have to have an unsubscribe mechanism to enable recipients to say they don’t want to receive any commercial messages from that sender and;
• Altering the destination of a message is forbidden, except for service providers who do it for the purpose of network management.

It is important to note that even material and email sent from outside the country, but routed through a Canadian computer, must comply.

Protecting Your Contacts
Email marketing is one of the most powerful tools available for communicating and developing relationships.  But this power is only realized when done well.  The new anti-spam legislation means that new business practices are needed to align with email marketing best practices including:

• Adherence to strong permission-based policies meaning that rented or purchased lists will only have value when customers are qualified
• The authentication of outbound email campaigns to help prevent forgery
• Mandatory email verification for any constant contact sender
• Ongoing flagged email lists and campaign review to prevent spam
• Outreach to ISPs to identify product misuse

Bill C-27, if passed, should result in a decrease in spam and an increase in legitimate communication, making online commerce more secure and encouraging legitimate business communication.

Working with an email marketing service provider can help marketers enhance their purchasing relationship with their current and potential customers, comply with information collection from third party resources, and as a result achieve the goals they have established for their campaigns.

Any business that uses email to communicate with customers and prospects needs to establish, in advance of the Bill C-27’s passage, a strong email strategy and practices.  In light of the proposed anti-spam legislation, businesses using the Internet and email need to consider how to strengthen client relationships, enhance the use of their databases so as to better customize the conversation with new and existing customers and at the same time remain compliant with stringent email laws.