Emails, and other types of commercial electronic messages, have become an integral part of the marketing and sales strategy for many real estate professionals.
If you currently use, or you're planning to use, electronic messages to promote your business to consumers and/or prospect clients, you must familiarize yourself with your compliance obligations pertaining to Canada's Anti-Spam Legislation (CASL) to:
- Avoid significant financial penalties;
- Prevent potential investigations as a result of consumers reporting violations; and
- Ensure you are operating your business on the right side of the law.
Read on for a description of CASL, types of consent and how to obtain consent, information on what is and is not allowed according to this anti-spam law, and the consequences of non-compliance.
WHAT IS CANADA'S ANTI-SPAM LEGISLATION (CASL)?
CASL is an anti-spam law that regulates the use of electronic messages by individuals or businesses for commercial purposes (relating to the sale or promotion of a product, service and/or business). CASL applies to the following types of electronic messages:
- Emails;
- Text messages (SMS);
- Direct messages on social media for marketing purposes; and
- The installation of software or apps on consumers' devices.
Passed into law on July 1, 2014, CASL is designed to protect Canadians from "spam," which includes unsolicited or deceptive commercial electronic messages promoting a product or service as well as malicious electronic messages or software that could pose a threat to a consumer's privacy or personal information.
CASL is primarily enforced and regularly monitored by the Canadian Radio-television and Telecommunications Commission (CRTC), a public authority in charge of regulating and supervising Canadian broadcasting and telecommunications.
TYPES OF ELECTRONIC MESSAGES COVERED BY CASL
CASL only regulates commercial electronic messages that relate to the sale or promotion of a product, service and/or business.
Therefore, CASL may apply to some, but not all, of the electronic messages you send to your clients and customers.
Below, we've provided a few real world examples of what CASL does and does not cover to
to help ensure you stay compliant in your business.
- Examples of What CASL DOES Cover:
- A commercial electronic message providing information about a listing or open house
- A commercial electronic message regarding the sales record of a real estate professional
- An inquiry into whether an individual is interested in buying or selling a property
- Examples of What CASL DOES NOT Cover:
- An electronic message sent to deliver a standard form to an existing client, such as a copy of an offer of purchase
- An electronic message to a client to discuss only personal and/or contract-related matters
- Electronic messages sent to respond to an inquiry or complaint
WHAT ARE THE CONSEQUENCES OF VIOLATING CASL?
Consumers can report CASL violations on fightspam.gc.ca. According to the CRTC, penalties for the most serious violations of CASL include a maximum fine of up to $1 million for individuals, and $10 million for businesses.
Since CASL came into force, nearly $2 million in Administrative Monetary Penalties and more than $400,000 in monetary payments were issued by the CRTC to corporations and individuals who violated CASL.
For more information about the consquences of violating CASL, please visit thislink on the Frequently Asked Questions (FAQ) page on fightspam.gc.ca.
ABOUT IMPLIED AND INFORMED CONSENT
Before you promote a product or service to a consumer using electronic messages, such as email, CASL requires that you must obtain either explicit or implied consent.
For information about consent requirements for commercial electroinc messages, please:
- Visit this link on The FAQ page on fightspam.gc.ca; and/or
- Read CREA's detailed overview of this legislation.
WHAT MUST CASL COMPLIANT COMMERCIAL ELECTRONIC MESSAGES CONTAIN?
For information about what Members must include in their commercial electroinc messages to consumers, please:
- Visit this link on The FAQ page on fightspam.ca; and/or
- Read CREA's detailed overview of this legislation.