Canada’s Anti-Spam Legislation (CASL)

A customer email list is only as useful as the consent behind it. Subject to the exceptions in subsections 6(5) to 6(8), section 6 of the Act prohibits sending a commercial electronic message to an electronic address unless the recipient has consented, whether the consent is express or implied, and the message meets the Act’s content rules on identifying the sender, giving contact information and setting out an unsubscribe mechanism. A buyer meets this rule when a deal includes a customer list and marketing is part of the plan.

What happens to consent when a business is sold

The Act speaks to this directly. If a person has an existing business relationship with another person under section 10(10) and the business is sold, section 10(12) treats the purchaser as having an existing business relationship with that other person in respect of that business. Innovation, Science and Economic Development Canada adds that implied consent is recognized only in certain circumstances, and that a sender relying on an existing business relationship must send within the time frames in section 10(10).

What to ask the seller

• Which addresses rest on express consent, and whether the seller kept a record of how and when it was given
• Which addresses rest on an existing business relationship, and when that relationship arose
• Whether past messages carried the required identification and an unsubscribe mechanism, and whether unsubscribe requests were honoured
• Whether the seller has received any complaint or notice about its messages, since contravening sections 6 to 9 is a violation carrying an administrative monetary penalty

See what privacy obligations apply to customer data when a tech company is sold and Quebec Law 25.