The Canadian Radio-television and Telecommunications Commission
("CRTC") recently issued a notice of violation
to, and imposed a $250,000 penalty on, a telemarketing company
that broke multiple rules under the CRTC's Unsolicited
Telecommunications Rules ("Rules"). The company was
calling Canadians to solicit donations of used clothes, which they
would then sell to thrift stores in Ontario and British Columbia.
The company's violations included, among others, calls to
Canadians whose phone numbers were registered on the National Do
Not Call List ("DNCL"), failure to subscribe to the
National DNCL, failure to register with the National DNCL operator,
and making phone calls during the restricted hours period.
This notice of violation is an important reminder to charities and
not-for-profits considering, or currently engaged in, solicitations
of donations by phone in Canada. Before placing telemarketing
calls, consider whether and to what extent the Rules apply. To
refresh yourself, you can read the Rules here: http://www.crtc.gc.ca/eng/trules-reglest.htm.
If you are going to be telemarketing in Canada, ensure your
charity or not-for-profit is properly registered with the National
DNCL operator and subscribed to the National DNCL, or confirm that
an applicable exemption properly applies. Once you are registered
and subscribed (or confirm an applicable exemption applies), do not
call the numbers on the National DNCL! This may seem obvious, but
it requires proper policies and procedures within your organization
to ensure inadvertent calls are not made to Canadians who do not
want them. For the sake of the Rules and your fellow Canadians,
ensure your calls are made during the permitted time frame. This
means calls can only be made on weekdays between 9:00 a.m. to 9:30
p.m., and on weekends between 10:00 a.m. and 6:00 p.m. (all times
are local time to the time zone you are calling). Finally, do not
forget to consider any applicable provincial rules, as some
provinces have their own requirements and permitted time frames
which may be different from the Rules.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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