On June 12, 2017, the Canadian Radio-television and Telecommunications Commission (“CRTC”) issued an undertaking to a Mr. Halazon in his individual capacity under section 21 of Canada’s Anti-spam Legislation (“CASL”) as the former CEO of various bankrupted corporations.
The undertaking included a monetary payment of $10,000 by Mr. Halazon in his personal capacity under section 31 of CASL which imposes liability on officers and directors of corporations that “directed, authorized, assented to, acquiesced in or participated in the commission of the violation”, as it was alleged that he was personally liable for violations under CASL. Specifically, the CRTC alleged that the bankrupted corporations sent commercial electronic messages with a non-functioning unsubscribe mechanism, or unsubscribe requests were not met within the statutory timeframe under CASL.
The undertaking also included a requirement that Transformational Capital Corp. and its subsidiaries, which were also represented by Mr. Halazon, enter into a compliance program.
It is interesting to note that the undertaking resolves alleged liability for CEMs “from 2 July 2014 up to the date of undertaking”. That is, the undertaking included alleged non-compliance with CASL from the day after the coming into force of CASL. While no registered charities or not-for-profits, or their directors, have been publicly issued undertakings or been issued notices of violations under CASL, the imposition of personal liability under CASL is an important reminder that CASL includes personal liability for directors and officers. As such, registered charities and other not-for-profits, along with their boards, that may be sending commercial electronic messages should ensure they are familiar with the requirements of CASL in order to avoid exposure to possibility of personal liability.