Québec company hit with $1.1-million penalty under CASL

Michael Fekete

Mar 6, 2015

Jennifer Brown, Canadian Lawyer

 

(Recap)
 

Almost a year after coming into force, the CRTC has issued its first fine and notice of violation under Canada’s anti-spam rules to a Québec company it says was in “flagrant” violation of the law.

The Canadian Radio-television and Telecommunication Commission’s chief compliance and enforcement officer issued a notice to Compu-Finder March 5. At $1.1 million the fine is well under the $10-million maximum allowable under the law.

The process in place is an unusual one, says Michael Fekete of Osler, Hoskin & Harcourt LLP in Toronto. If an organization that receives the notice of violation disagrees they can challenge the notice of violation.

“The fact they have mentioned the undertaking is interesting – I think they are highlighting that it is an option for organizations to come and make a deal with the CRTC rather than have the notice of violation and related fine stand. It isn’t entirely clear,” he says.

The fine may be considered appropriate given the size of the company, says Fekete.

“I think the CRTC would have balanced the desire to have a meaningful penalty that really does send the right message to organizations that they must comply, at the same time not put this company out of business,” Fekete says.

Read the full article.

For more on this topic, see our Osler Update.