OneClass to Pay $100,000 for CASL Violation
October 2020 Charity & NFP Law Update
Published on October 30, 2020

By Ryan M. Prendergast

   
 

In a new release dated September 30, 2020, the Canada Radio-television and Telecommunications Commission (“CRTC”) announced that it had reached an agreement with Notesolution Inc. (doing business as OneClass) (“OneClass”) to resolve alleged violations of Canada’s Anti-spam Legislation (“CASL”), including a voluntary undertaking from OneClass to make a payment of $100,000.

OneClass provides an electronic platform for post-secondary students to access exam study guides, lecture notes and video tutorials. The CRTC alleged that OneClass did not comply with CASL by sending commercial electronic messages (“CEMs”) promoting its platform without obtaining consent from the recipients between October 31, 2016 and March 25, 2020, and installed a computer program on post-secondary students’ computers between October and November 2016 that collected their personal information, including usernames and passwords, in the course of its commercial activities without obtaining their express consent.

In addition to making the $100,000 monetary payment pursuant to s 21 of CASL, OneClass also agreed to develop and implement a compliance program addressing the sending of CEMs; to monitor and review its internal policies and procedures to eliminate incentives for its employees to violate CASL; and to register and track CEM complaints and resolutions.

Although OneClass is not a charity, this decision is a helpful reminder to charities and not-for-profits of the importance of CASL compliance, and the high monetary cost that can be associated with violations. Although there are certain exemptions for registered charities that permit them to send CEMs for the primary purpose of fundraising, charities and not-for-profits are generally subject to CASL’s CEM requirements, and as such should obtain express consent from each recipient before sending CEMs.

   
 

Read the October 2020 Charity & NFP Law Update