Spam Bill C-28-lender and broker effects

Canada recently adopted a new spam law, known as Bill C-28. He is expected to come into force later this year.

Defenders that C-28 will alleviate spam load of all of us.

At the same time, it may include many businesspeople in spammers, themselves!

As a broker in mortgages for example, it is not common to send e-mail messages or newsletters to current or former clients. In some cases, you may not have been in contact with a customer for years.

If this situation applies to you, C-28 will change the habits your e-mail. For brokers, mortgage professionals and lenders is worth to know the consequences in advance.

Here are some key points for Bill C-28:

• It is known as "before the fighting Internet and wireless spam ' Act (FISA)
• Royal ascent was released in December, and is expected to come into force in late summer/early fall.
• The implementation is a region of the CRTC, the Competition Bureau and Office of the Privacy Commissioner
• Offenders to see higher fines, 1 million dollars for a person or 10 million dollars in violation of the Organization
• It was broadly defined to include all commercial electronic messages, including email, SMS text, sound, voice messages or images.

"Will have a significant impact on the country of a mortgage broker stuff, but also to anyone who sends messages that have a commercial purpose, in whole or in part," says Nicole Kutlesa, senior associate with Osler, Hoskin and Harcourt LLP in Toronto.

"It introduces an entirely new standard in terms of the agreement that we have not in Canada prior to this legislation."

The key to that legislation, that is, introduces standard of Express consent, or "", says Kutlesa. "This is quite significant and different from what companies are doing today. "

Here's how it works:

If you have an existing business relationship with the client (e.g. you have sold something or are posredniceše their mortgage), you are allowed under this legislation, in order to send commercial e-mail messages to this person during the working relationship, even if messages are unrelated with the transaction.

For brokers Kutlesa says business relationship continues during the mortgage term, as it is not be renegotiated earlier than elsewhere.

At the end of the business relationship you still have up to two years to send commercial communications without the need for further consent.

By the end of the second year, however, you must have the express consent of the customer that they want to continue receiving your communications. The exception is when you are involved in other commercial activities with the customer, in which case the agreement shall apply in accordance with the legislation. Kutlesa said, this can be done in the form of a check box, embedded in the message, although it is important, the field remains blank until it is incorporated by the customer (hereinafter criteria for "opt in").

What is important in all cases is that the message you send, be it, e-mail, newsletter or other materials, e-commerce, you must identify yourself, include contact information (which must be valid for at least 60 days after the message was sent), and a mechanism for withdrawal in accordance with the law.

"This is very serious because the sanctions under statute are significant," says Kutlesa relating to the maximum fines of $ 1 million for individuals and $ 10 million for the companies found in breach of the law. At the top of this, the Bill allows for both a private right of action (if there was loss or damage as a result of unwanted messages), and the responsibility of the directors and employees.

While Kutlesa says that the purpose of the legislation is to crack down on real spammers, it says that does not mean the enforcement authorities are not willing to make an example of a legitimate company in violation of the legislation.

Express consent is not always required, however. There are some exceptions including:

• Support of current customer – you can continue to send messages that provide notification or factual information, an existing associated with the customer account.
• Requests — if you receive a request from someone seeking information or evaluation is allowed to respond.
• Business cards – if someone has you his business card, which reveals your e-mail, you can send them messages pertaining to their business role provided that they are not otherwise specified do not wish to receive unsolicited communications.
• Family -can be sent messages to people who have personal or family connection, which is expected to be laid down in the regulations to include family and friends.

The bottom line is companies will have to go through their database of contacts, and in many cases, you may need to get all previous customers to choose objected in if they wish to continue the trade of these contacts, Kutlesa said. It added that it is unlikely that companies will lose certain contacts, as not all it will take time to give their consent, or may simply refuse.

Rebecca Chan, a partner with Borden Ladner Gervais LLP, run also many questions about the Parliament and recommends that companies began preparation earlier rather than later.

"We are telling our clients in the financial services not to wait until the in force to start thinking about how to comply with the law," she says. "Mortgage brokers, like the others, you will need to process for addressing existing customers and prospects, past clients."

Chan noted that the process will be most likely to be sorted with internal or external suppliers of it, therefore it is recommended that companies can start early.

"Which cannot normally be during the night, therefore we suggest that the process of review begins before the effective date."

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Steve Huebl, THIS YEAR'S CMT MUSIC