August 17, 2011
Electronic message marketing is a reliable method for franchisors to reach their broad customer bases in Canada. However, the method in which these messages are disseminated is about to change, and franchise systems should be aware of how new anti-spam law may impact on their marketing strategies.
In December 2010, the Fighting Internet and Wireless Spam Act was passed in Canada and, while it is still not yet in force, the CRTC and Industry Canada recently published draft regulations to govern the form of commercial electronic messages sent to Canadians, such as e-mail, text and maybe even social media messages.
As franchisors prepare for electronic message marketing, it would be prudent to bear the following proposed regulations in mind:
Businesses will be permitted to rely on a 3-year grace period from the date on which the legislation comes into force with respect to existing business relationships with recipients, but the application of this statute is far-reaching, and franchised businesses should be preparing now for the future of electronic messaging.