By Order in Council dated June 7, 2017, the federal government
suspended the coming into force of the private right of action
provisions under Canada's Anti-Spam legislation (CASL),
"in response to broad-based concerns raised by businesses,
charities and the not-for-profit sector." Privy Council Office Announcement.
Under the private right of action provisions, organizations (and
their officers, directors and agents) could be sued by any person
claiming to have been affected by a contravention of CASL.
Plaintiffs could claim both compensatory damages (for actual
losses, damages and expenses suffered or incurred) as well as
statutory damages (which in some cases could amount to as much as
$1,000,000 per day).
Experts predicted the provisions would be used to support class
action lawsuits seeking significant statutory damages on behalf of
groups of affected individuals. The indefinite suspension of the
private right of action provisions eliminates the risk of private
litigation or class actions under CASL for the time being.
The surprise announcement does not specify if or when the private
right of action provisions will take effect in the future, but does
indicate that a parliamentary committee will be reviewing CASL
"in order to promote legal certainty for numerous stakeholders
claiming to experience difficulties in interpreting several
provisions of the Act while being exposed to litigation
risk."
Although the private right of action provisions have been
suspended, all other provisions of CASL remain in force and in
effect and are subject to regulatory review and enforcement
proceedings, with the potential for significant administrative
monetary penalties for non-compliance.
If you have any questions regarding upcoming provisions to CASL,
please contact a member of Field Law's
Privacy Group.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.