On March 24, 2016, the Canadian Radio-television and Telecommunications Commission (“CRTC”) signed the Memorandum of Understanding between the United States Federal Trade Commission and the CRTC on mutual assistance in the Enforcement of Laws on commercial email and telemarketing (“MOU”) with the United States Federal Trade Commission (“FTC”), which concerns unsolicited telecommunication and commercial electronic messages (spam). The MOU functions to strengthen cooperation between the CRTC and FTC in the enforcement of spam and telemarketing laws, and to facilitate research and education in this regard as well.
The MOU does not legally bind Canada or the US, but it “sets forth the Participants’ intent with regard to mutual assistance and the exchange of information for the purpose of enforcing and securing compliance…”. Section II.B.1 states that the Participants understand that it is in their best interest to:
- Cooperate with respect to the enforcement against Covered Violations, including sharing complaints and other relevant information and providing investigative assistance;
- Facilitate research and education related to unauthorized telemarketing and unauthorized telephone calls;
- Facilitate mutual exchange of knowledge and expertise through training programs and staff exchanges;
- Promote a better understanding by each Participant of economic and legal conditions and theories relevant to the enforcement of the Applicable laws; and
- Inform each other of developments in their respective countries that relate to this Memorandum in a timely
The MOU also sets out procedures related to mutual assistance. For instance, both countries are to designate primary contacts for communication (i.e. the Chief Compliance and Enforcement Officer of the CRTC). It also discusses limitations and the fact that both countries maintain discretion as to whether or not they decline a request for assistance or the extent to which they will participate. Over all, the MOU emphasizes the long-standing partnership between the two agencies and encourages U.S. and Canadian authorities to continue and expand information exchanges, and provide assistance for cross-border anti- spam enforcement purposes.
Although the MOU has little immediate impact on the charitable and not-for-profit sector in Canada, the experience of the FTC in investigating non-compliance by charities in the US with such rules may carry over to the CRTC. In this regard, charities or non-profit organizations that are impacted by Canada’s anti- spam laws or telemarketing regulations should review their compliance to ensure that their practices do not become a lesson in non-compliance for the FTC.