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Everything you need to know about Canada’s Anti-Spam Legislation (CASL)

For entrepreneurs and small businesses

Three graphic envelopes in circles representing Canada’s Anti-Spam Legislation (CASL)

In today’s digital world, email marketing and online communication are key to growing your small business. But with these opportunities come responsibilities, particularly when it comes to Canada’s Anti-Spam Legislation (CASL). At Canada Digital Market, we believe that understanding and complying with CASL is essential for small businesses that want to build trust and avoid costly penalties. In this blog post, we’ll break down the essentials of CASL in simple terms and give you practical tips on how to stay compliant.

What is CASL?

Canada’s Anti-Spam Legislation (CASL) is a law designed to protect Canadians from spam and other electronic threats. It regulates how businesses send commercial electronic messages (CEMs), including emails, texts, and social media messages, with the goal of reducing unwanted communication. In effect since July 1, 2014, CASL requires businesses to follow strict rules when sending promotional messages, ensuring that recipients have provided consent.

Who needs to follow CASL?

If your business sends emails or messages to promote products, services, or events, CASL applies to you. Whether you’re running a small e-commerce shop or managing a local service-based business, if you’re communicating with people in or outside of Canada, you need to ensure you’re compliant.

Even though CASL primarily applies to email marketing, it covers all forms of digital communication, including text messages, social media messages, and even some phone app notifications.

Understanding consent: Express vs. implied

One of the core principles of CASL is the requirement for consent. Businesses must have permission before sending commercial messages. CASL recognizes two types of consent:

1. Express consent:

This is when someone explicitly agrees to receive marketing messages from your business. Express consent can be gathered through signup forms, checkbox agreements, or similar methods where users give clear permission.

Sophie Cie's website pop up CASL consent for the newsletter subscribtion

An example of express consent we implemented is the pop-up form on Sophie+Cie’s website for newsletter subscriptions.

Sophie Cie's website form with CASL consent for ordering a book

An example of express consent we implemented on Sophie+Cie’s lead generation form.

2. Implied consent:

This applies in certain situations, such as when someone has purchased a product or service from you, or you have an existing business relationship. Implied consent is temporary and typically lasts for two years unless renewed.

Tip: It’s always best to aim for express consent whenever possible. It keeps your email list cleaner and builds trust with your audience.

What needs to be in every email

To comply with CASL, every commercial email or message you send must include:

  • Clear identification of the sender: Include your business name, mailing address, and a way to contact you, like a phone number or email.
  • An unsubscribe option: You must provide a simple, easy-to-find way for recipients to opt out of future emails. CASL requires you to honour unsubscribe requests within 10 business days.
Sophie Cie's email CASL compliance

An example of clear sender identification and an easy-to-use unsubscribe option we implemented in one of Sophie+Cie’s email campaigns.

What happens if you don’t comply?

Non-compliance with CASL can result in serious penalties. For individuals, fines can reach up to $1 million, and for businesses, penalties can be as high as $10 million. Some companies have faced hefty fines for failing to follow CASL’s rules, making it clear that businesses of all sizes need to take this law seriously.

Best practices for CASL compliance

Staying compliant doesn’t have to be complicated. Here are a few easy steps to help your business stay on the right side of the law:

  • Collect express consent: Use signup forms or double opt-in emails to make sure you’re gathering valid consent.
  • Keep records: Maintain a database of when and how you obtained consent from each subscriber.
  • Be transparent: Always let people know what they’re signing up for and how often they can expect to hear from you.
  • Monitor your campaigns: Regularly audit your email lists and communication practices to ensure you’re meeting CASL requirements.

How CASL affects your digital marketing

While CASL might sound restrictive, it’s actually beneficial for your digital marketing. By focusing on building an engaged email list with people who genuinely want to hear from you, you’ll get better open rates, engagement, and return on investment. Plus, following CASL helps build trust with your audience, which is crucial for long-term success.

For small businesses, CASL also encourages a smarter approach to email marketing and digital outreach. By focusing on people who have given you express consent, your email campaigns will be more effective, targeted, and likely to drive growth.

Conclusion

Canada’s Anti-Spam Legislation might feel complex, but at Canada Digital Market, we believe it’s an important tool for businesses looking to build trust with their customers. By following the simple steps outlined above, your business can stay compliant, avoid hefty fines, and ensure that your digital marketing campaigns are reaching the right audience.

If you need help refining your email marketing strategy or ensuring your business is CASL-compliant, our team at Canada Digital Market is here to guide you. Reach out to us today for expert advice on growing your online presence while following best practices.

Do you have questions about implementing CASL compliance in your own business? Click here to schedule an appointment with us today!

Resources

15th October, 2024
Author: Canada Digital Market Inc.

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