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What Canada's New Anti-Spam Legislation Means for Franchisors

By Dominic Mochrie and Andraya Frith

Canada will soon have the dubious distinction of having what many believe is the most onerous and comprehensive anti-spam legislation in the world (S.C. 2010, c. 23, known colloquially as “CASL”). While first impressions may be that any anti-spam legislation is a benefit, a review of the legislation reveals restrictions and obligations that apply to virtually all commercial electronic messages, and certainly beyond what is typically thought of as spam. CASL also will enact rules to restrict spyware (installation of computer programs on another person's computer) and certain practices such as pharming and address harvesting. Both the anti-spam and spyware provisions are drafted broadly and will apply to most instances of the remote installation of a computer program on another person's computer, regardless of whether the program is installed for a malicious purpose. Accordingly, despite the seemingly good intentions of the legislation, it has the prospect of affecting virtually all legitimate businesses. Franchisors' relationships with customers and with their franchisees will be affected.

CASL focuses on three main topics: 1) restricting unsolicited commercial electronic messages, 2) restricting the installation of computer programs on another person's computer, and 3) other practices, such as pharming and address harvesting.

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