Canada’s Anti-Spam Law (CASL) has major implications on how you conduct business. At its core, the new law prohibits someone from sending a commercial electronic message (CEM) unless:

• A statutory exemption applies, or
• The sender has the recipient’s implied or express consent

A CEM is not simply defined as an e-mail communication but rather a text or SMS message, for example, can also be identified as a CEM. An e-mail offering potential clients a free consultation of their financial well-being could be viewed as commercial activities. Statutory exemptions exist:

• Between individuals who have a personal or family relationship
• If a Broker receives a referral about a potential new client, from someone who has an existing relationship with both Broker and prospect, the Broker can send one introductory message to that prospect
• Where there is an “active” existing business relationship. “Active” is defined as within a 2 year period from purchase or within a 6 month period since last service provided.
• Where the recipient visibly publishes their electronic address without stating it does not welcome CEMs
• Where you are handed the persons business card containing their electronic address

The law puts the onus on senders of electronic messages to keep on top of the nature and status of the relationship to each recipient, similar to the existing Do Not Call legislation. It is suggested that Brokers take the following steps to avoid violation of these laws:

• Add to your existing consent and authorization document obtained from new clients to not only include your ability to collect and retain personal information but also to communicate with the client electronically
• Work through your existing client base to reach out and obtain their signed express consent as you complete annual reviews of their insurance/financial portfolios, provide administrative services of their inforce policies or recommend additional insurance needs
• Once you have obtained client consent to communicate with them in an electronic fashion, reference their ability to remove themselves from your electronic listing and give them an easy way to remove, opt-out or unsubscribe from future communications.

It is important to note that electronic messages asking for consent will themselves be treated as violations of the act.

Gathering express consent from clients will make compliance with CASL easier. Don’t wait to act!

Remember,
Good Business is Compliant and Compliance Matters!