Unsolicited Telecommunications Rules: Know your obligations

The Unsolicited Telecommunications Rules are a set of strict rules that individuals, companies and organizations must follow when communicating with Canadians who have not reached out to them first.

What are the Unsolicited Telecommunications Rules?

Under the Telecommunications Act, the CRTC is responsible for regulating the practice of unsolicited telecommunications activities, such as cold calling. This is when a business calls a phone number hoping to solicit business.

The Unsolicited Telecommunications Rules are designed to protect the privacy of Canadians and prevent unsolicited calls while still allowing the legitimate use of such activities. They consist of various sections, with three key parts:

National Do Not Call List Rules
Telemarketing Rules
Automatic Dialing–Announcing Device Rules

These rules set out a telemarketer’s responsibilities. Many issues of non-compliance are caused by a telemarketer being unaware of their responsibilities.

A telemarketer is a person who conducts telemarketing either on their own behalf or on behalf of someone else.

“Telemarketing" means the use of telecommunications facilities to make unsolicited calls for the purpose of solicitation.

A telemarketer is a person who conducts telemarketing either on their own behalf or on behalf of someone else.

“Telemarketing" means the use of telecommunications facilities to make unsolicited calls for the purpose of solicitation.

The Unsolicited Telecommunications Rules have been updated over the years in response to evolving technologies and business models. These rules relate to such obligations as:

restricting which consumer phone numbers you can call for solicitation purposes
restricting calling hours
setting out the information that must be disclosed
restricting the use of automatic dialing–announcing devices (devices that make robocalls)
imposing record-keeping requirements
etc.

Know your obligations

Key information for telemarketers

Why comply?

Penalties

Violating the Unsolicited Telecommunication Rules can result in monetary penalties. It is therefore important that you familiarize yourself with the Unsolicited Telecommunication Rules if you plan to engage in telemarketing activities. This will help you avoid the consequences of non-compliance. (Refer to list of previous enforcement actions taken)

The penalty amount varies, depending on the nature of the violation:
- Individuals: Up to $1,500 per violation (e.g., per call)
- Corporations: Up to $15,000 per violation (e.g., per call)
Vicarious Liability

A person or company can be found vicariously liable for a violation of the Unsolicited Telecommunications Rules. This happens when the violation is committed by an employee, agent, or mandatory, while acting in the course of their employment or as part of their contracted responsibilities. Vicarious liability can apply regardless of who committed the violation and regardless of whether any proceedings are launched against them for the violation.

If you hire or use a vendor to make calls and generate leads on your behalf (a lead generator), you are still responsible for complying with the Unsolicited Telecommunications Rules. It is your responsibility to ensure that the lead generator is following the Rules. (For more information on lead generating, see ‘Agent hiring a lead generator to make telemarketing calls’ in the Real Estate section.)

Under the law, you can be held liable for the actions of the lead generator and any violations of the Unsolicited Telecommunication Rules that occur while they are conducting telemarketing activities on your behalf or on behalf of your company. Therefore, you need to ensure your lead generator is complying with the Unsolicited Telecommunication Rules.
Tips for Ensuring Compliance
- Register and subscribe to the National Do Not Call List before making (or having someone else make) telemarketing calls.
- Maintain an internal “do not call list” and keep it up to date. If a consumer asks to be removed from your call list, you must do this within 14 days of their request.
- Set up a corporate compliance program and continuously review your policies and procedures to ensure you remain compliant. At a minimum, make sure that you:
  - keep accurate records of call scripts and call logs
  - maintain an internal do not call list
  - keep a copy of your subscription to the National Do Not Call List
  - keep a copy of any contracts you have with third parties making calls on your behalf

Guidance for specific industries

The real estate industry

Financial dealers (investments and mutual funds) and advisors

The insurance industry

Mortgage brokers

Car dealerships

HVAC, heating and cooling, and duct cleaning companies

All other industries