Damaging electronic commerce

Early iterations of Canada’s anti-spam laws were named with some irony as the Electronic Commerce Protection Act.

Last week, the CRTC issued guidance [“Guidelines on the interpretation of the Electronic Commerce Protection Regulations” and “Guidelines on the use of toggling as a means of obtaining express consent under Canada’s anti-spam legislation“] that were intended to help Canadian businesses better understand the soon-to-be proclaimed anti-spam legislation. The CRTC said that it expects the legislation to come into force in 2013.

A number of law firms have written advisories that appear to confirm that the rules will add considerable red-tape for Canada’s business community. For example, here are links to reports by David Elder at Stikeman Elliott, Michael Fekete and Matthew Wanford at Osler and Bernice Karn of Cassels Brock. Each speak of the compliance burden on business.

I wonder to what extent these rules will serve as an inhibitor to the use of electronic mail and digital communications as a means to reach consumers. The imposition of such rules appears to fly in the face of Government statements (and a Red Tape Commission) that it is seeking to lessen the burden on small business.

As I have written before, I continue to have doubts that any of us will see a decrease in the volume of real spam – offers for anatomical enhancement, debt relief, etc. This bill, as it was passed, will serve to dramatically increase the cost of electronic business and act as a deterrent for e-commerce adoption by legitimate businesses in Canada. The government should sit on this one until its impact can be assessed and integrated into an overall national digital strategy.

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