Kellogg Canada Agrees to Penalty in CASL (Canadian Anti-spam Law) Consent Case

CANADIAN CASL (ANTI-SPAM LAW) PRECEDENTS

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to comply with CASL (Canadian anti-spam law)?

We offer Canadian anti-spam law (CASL) precedents and checklists to help electronic marketers comply with CASL.  These include checklists and precedents for express consent requests (including on behalf of third parties), sender identification information, unsubscribe mechanisms, business related exemptions and types of implied consent and documenting consent and scrubbing distribution lists.  We also offer a CASL corporate compliance program.  For more information or to order, see: Anti-Spam (CASL) Precedents/Forms.  If you would like to discuss CASL legal advice or for other advertising or marketing in Canada, including contests/sweepstakes, contact us: contact.

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On September 1, 2016, Kellogg Canada Inc. (“Kellogg”) agreed to pay a $60,000 penalty in relation to an alleged violation of the consent provision of Canada’s federal anti-spam legislation (CASL) under a voluntary undertaking.

Under the terms of the undertaking, Kellogg has agreed to pay a monetary penalty, comply with (and ensure that any 3rd party authorized to send commercial electronic messages on its behalf complies with) CASL and to review and update its anti-spam compliance program.

This most recent CASL case is interesting for several reasons.

In general, it shows that the CRTC (the Canadian enforcement agency primarily responsible for enforcing CASL) is still working through matters that arose early after CASL came into force two years ago and that penalties, while not at the top end of the corporate maximum, have generally been significant. The CRTC has also targeted firms of all sizes in its enforcement efforts to date (though there seems to be little enforcement yet against international firms marketing into Canada).

More specifically, the case is a reminder that compliance with the basic CASL requirements (consent, identification and an easy unsubscribe mechanism) remains both top of mind for the CRTC and should be a compliance focus for companies marketing electronically to Canadians.

The case is also a caution that companies should ensure that 3rd party marketers and marketing partners comply with CASL, given that, according to the CRTC’s announcement, the case related to “messages sent by Kellogg and/or its third party service providers”. Companies using third party marketers for promotions should also consider agreements with their partners with risk shifting provisions in the event CASL issues arise or penalties are imposed.

This most recent CASL enforcement matter is also a reminder that the CRTC wants companies engaged in electronic marketing to have effective compliance programs in place.

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I am a Toronto competition/antitrust lawyer and advertising/marketing lawyer who helps clients in Toronto, Canada and the US practically navigate Canada’s advertising and marketing laws and offers Canadian advertising/marketing law services in relation to print, online, new media, social media and e-mail marketing.

My Canadian advertising/marketing law services include advice in relation to: anti-spam legislation (CASL); Competition Bureau complaints; the general misleading advertising provisions of the federal Competition Act; Internet, new media and social media advertising and marketing; promotional contests (sweepstakes); and sales and promotions. I also provide advice relating to specific types of advertising issues, including performance claims, testimonials, disclaimers, drip pricing, astroturfing and native advertising.

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