The highly anticipated date of July 1st was supposed to bring private right of action to Canada’s anti-spam legislation. We reported on the topic here.
However, the Government of Canada has chosen to suspend the provision after getting a wave of backlash from businesses. In a statement last week, the Government of Canada announced that even though,
“Canadians deserve an effective law that protects them from spam and other electronic threats,” Canadian organizations should not have to bear this burden of unnecessary red tape and costs associated with compliance.
The Canadian Government indicated that it supports a “balanced approach that protects the interests of consumers while eliminating any unintended consequences for organizations” and will ask a parliamentary committee to review CASL.
This seems like a good move for both sides. Businesses, for the time being, won’t have to worry about multi-million dollar lawsuits on top of the onerous provisions of CASL. And the legislation will have a chance for review and improvement.
Although the private right of action is no longer impending, Canadian organizations are still at risk of incurring administrative penalties if they do not comply with CASL (maximum of $1,000,000 for individuals and $10,000,000 for businesses). A healthy compliance program will avoid exposure to penalties.
For any other questions related to the regulations under CASL, send those to our team at firstname.lastname@example.org.