Answering the Call: Building a Safe, Convenient Telemarketing Environment for Canadians
2016-17 CRTC Annual Report on the Operation of the National Do Not Call List

Better Telemarketing Practices = Better Business

Taking Action to Protect Canadians

Emerging Global Challenges Demand Creative New Approaches

Long description

This year we issued:

• 713 warning letters
• 6 citations for violations associated with the DNCL Rules and the Unsolicited Telecommunications Rules
• 31 citations for violations associated with the Canada Elections Act (Voter Contact Registry)
  2015 federal election and the provincial by-elections in 2016-17
• 5 notices of violations in Canada
• 3 notices of violations internationally
• $1,013,500 in financial penalties^{Footnote 7} through notices of violation
  • $608,500 of these were financial penalties collected through settlements^{Footnote 8}

To address these challenges, our analysts rely on sophisticated tools and work with partners across Canadian and international borders to investigate violations. The intelligence we generate supports key decisions inside and outside of our organization and helps us fine-tune our approach when it comes to specific technologies and industries.

In 2016-17, we improved our capacity to pursue violators outside of Canadian borders and addressed emerging technical issues like illegitimate caller identification (ID) spoofing.^{Footnote 9} We built custom solutions that draw on external databases and analytical tools, conducted data sweeps to identify industry-wide non-compliance trends, and built preliminary reports that will help with our investigations.

In partnership with Canadian carriers and National Cyber-Forensics and Training Alliance Canada, we also continued to support the Canadian Telephony Honeypot (a.k.a. Honeypot)—a vital tool for learning about violators of the Rules.

And finally, we took part in important international forums—such as the Unsolicited Communications Enforcement Network (UCENet); the Messaging, Malware and Mobile Anti-Abuse Working Group; the Community of Federal Regulators; and the International Mass Marketing Fraud Working Group—to explore, share, and build innovative ways for the regulatory community to serve its constituents.

Taking Action to Enforce Compliance

When it comes to enforcing the Rules, one of our main goals is to bring violators into compliance. To this end, once we’ve gathered intelligence to select and investigate cases of alleged violation, we use enforcement tools to appropriately respond to each unique case. These tools include:

• Warning letters for minor violations.
• Citations that set out specific corrective actions.
• Notices of violation (NoV), which are formal enforcement measures (set out in section 72.07 of the Telecommunications Act) that could carry a financial penalty (legally called an administrative monetary penalty or AMP).
• Negotiated settlements, which are formal agreements between entities that commit serious violations and the Chief Compliance and Enforcement Officer. As part of a settlement, the entity must admit liability, stop violating the Rules, accept an NoV with an AMP, and develop a compliance program.

Our enforcement activities for violation of the Rules include warning letters, citations, and penalties of up to $1,500 per violation per day for individuals and up to $15,000 per violation per day for corporations.

2016-17 Highlights: Spotlight on Enforcement

• 100% — Every entity we brought into compliance with the Rules through negotiated settlements implemented compliance practices.
• 100% — Every entity we subjected to enforcement in 2015-16 stayed compliant during 2016-2017.

2016-17 Penalties for Violating or Misusing the National DNCL

Violating ADAD (“Robocall”) Rules

Automatic Dialing-Announcing Device (ADAD) use, commonly known as robocalls, is carefully set out in the Rules.

• Sirius XM Canada Inc. received an NoV for violations of the ADAD Rules between August 2012 and January 2015. — Penalty: $650,000^{Footnote 10}

Misusing National DNCL

Under the Rules, telemarketers cannot make calls to Canadians whose phone numbers are registered on the National DNCL or their clients’ internal DNCLs. Some call centres failed to (1) subscribe to the National DNCL, (2) verify their clients’ subscriptions and registrations with the National DNCL and (3) avoid calls outside of designated calling hours. The following companies were issued penalties as part of their notices of violations:

• Raid Inc. — Penalty: $500,000
• 9117-7683 Québec Inc. (operating as Centre d’appels JL). — Penalty: $40,000
• Leads, Call Centers & Marketing Solutions Inc. — Penalty: $30,000
• 8472416 Canada Inc. (operating as Télémarketing TS) — Penalty: $8,000
• 9165-2602 Québec Inc. (operating as Planification Marketing CF) — Penalty: $5,000
• Vikram Malik and Inderjeet Singh Baweja, operating as Support Avenues — Penalty: $7,500
• Robert Gendron (operating as Dynique Restoration and Victorian Restoration) — Penalty: $18,000

Sector Focus: Violations in the Home Improvement Sector

This year, we conducted investigations into several home improvement companies for alleged violations of the Rules as a result of complaints filed by Canadians. Six companies received NoVs, with penalties totaling $420,000, for making non-compliant telemarketing calls to Canadians:

This year, we conducted investigations into several home improvement companies for alleged violations of the Rules as a result of complaints filed by Canadians. Six companies received NoVs, with penalties totaling $420,000, for making non-compliant telemarketing calls to Canadians:

• Just Energy Corp. – Penalty: $240,000
• Green Planet Home Services Inc. – Penalty: $90,000
• 4140800 Canada Inc. (operating as Coolheat Comfort Systems Inc.) – Penalty: $36,000
• Canglow Windows and Doors Inc. – Penalty: $30,000
• Budget Heating and Plumbing Services – Penalty: $12,000
• Natures Carpet Cleaning (2012) Ltd. – Penalty: $12,000

Protecting Voters

In addition to enforcing the Rules around sales-related calls, under the Fair Elections Act, the Canadian Elections Act, and the Telecommunications Act, we also enforce the Voter Contact Registry. This tool protects Canadians from rogue or misleading telephone calls and ensures transparent contact with voters during elections.

Our enforcement activities for violations of Voter Contact Registry include warning letters, citations, and penalties of up to $1,500 per violation per day for individuals and up to $15,000 per violation per day for corporations.

This year, we issued 31 citation letters for alleged violations under the Voter Contact Registry associated with the 2015 federal election and the provincial by-elections in 2016-17.

These citations generally involved a failure to file a registration notice. They were issued to: