Interview with
nancy webster
December 2007
Interviewee: Nancy Webster Cole, Senior Manager-Telemarketing Regulation, CRTC
Subject: Canada's National Do Not Call List (National DNCL)
Nymity: Nancy, what led the Canadian Radio-television and Telecommunications Commission (CRTC) to create a new framework for the regulation of Unsolicited Telecommunications (i.e. telemarketing and to establish a National Do Not Call List (National DNCL)?
Webster Cole : In recognition of the difficulties encountered by Canadian consumers in preventing unwanted telemarketing calls, Parliament amended the Telecommunications Act to grant the CRTC the powers required to, among other things, establish a National Do No Call List. this was accomplished through An Act to amend the Telecommunications Act, S.C.> 2005, c.40, which came into force on 30 June 2006. The amendments also granted the CRTC new powers to enforce any prohibition or regulation made by the CRTC with regard to unsolicited telecommunications (i.e. telemarketing) through the imposition of administrative monetary penalties.
Nymity: How did the CRTC determine what the new framework and the National DNCL Rules would be?
Webster Cole : The CRTC held a public proceeding inviting comments from the industry and consumer groups. The proceeding culminated with Telecom Decision 2007-48 Unsolicited Telecommunications Rules framework and the National Do No Call List, issued on 3 July 2007.
Nymity: In addition to the new National DNCL Rules what else did the CRTC determine in that Decision?
Webster Cole : The CRTC modified the Telemarketing and Automatic Dialing-Announcing Device (ADAD) Rules, clarified the exemptions to the National DNCL Rules, and identified factors it will use to determine if it should impose an administrative monetary penalty when a violation of the rules occurs. In making its determinations, the CRTC carefully considered the need to protect the privacy of Canadians and to prevent undue inconvenience and nuisance from unsolicited telecommunications, while still allowing for legitimate uses of telemarketing telecommunications.
The CRTC also determined that it would contract the implementation and operation of the National DNCL to a third party.
Nymity: When will organizations need to comply with the National DNCL Rules and the new Telemarketing and ADAD Rules?
Webster Cole : The new Rules will take effect when the National DNCL is operational. Currently, the CRTC is evaluating bids submitted in response to a Request for Proposal that was issued to find a third party to develop, implement, and operate the list. Shortly after a contract has been awarded, the selected third party will provide a timeline showing when the National DNCL will be operational.
Nymity: What companies/industries must comply with the National DNCL Rules?
Webster Cole : All companies and industries who conduct telemarketing, i.e., use telecommunications facilities to make unsolicited telecommunications for the purposes of solicitation, including solicitations for donations, must comply with the National DNCL Rules. There are exemptions to the rules set out in the amendments to the Telecommunications Act.
Nymity: Are charities exempted from the National DNCL Rules?
Webster Cole : Telemarketing telecommunications made by, or on behalf of a charity that is registered within the meaning of subsection 248(1) of the Income Tax Act are exempt.
Nymity: Are there other exemptions set out in the Telecommunications Act?
Webster Cole : Yes, other exemptions include telemarketing telecommunications made by or on behalf of a political party, nomination contestant, leadership contestant, or candidate of a political party where that party is a registered party as define in subsection 2(1) of the Elections Canada Act. Telemarketing telecommunications made for the sole purpose of soliciting a newspaper subscription and of collecting information for a survey are also exempted.
Nymity: Are there exemptions for organizations contacting existing customers?
Webster Cole : Yes, telemarketing telecommunications made to a person with whom the organization has an existing business relationship are exempt from the National DNCL Rules. It is important to note that a person in this circumstance can ask the organization not to call them in the future.
Nymity: What is defined as an existing business relationship?
Webster Cole : An existing business relationship is one in which the consumer has:
- Purchased services or purchased, leased, or rented products, or has a written contract that is in existence or has expired with the 18-month period preceding the date of the telemarketing telecommunication.
or
- Made an inquiry or application about a product or service within the 6-month period preceding the date of the telemarketing telecommunication.
Nymity: Do the National DNCL Rules apply to business-to-business telemarketing?
Webster Cole: No, in Telecom Decision 2007-48 the CRTC determined the National DNCL Rules would not apply to business-to-business telemarketing.
Nymity: Do organizations making telemarketing telecommunications that are exempt from the National DNCL Rules required to keep their own do not call lists?
Webster Cole: Yes, if a consumer asks not to be called by an organization making exempt telecommunications, the organization must place that consumer's name and number on its own do not call list and honour their request for a period of 3 years and 31 days. Additionally, the organization must identify the purpose of the exempt telemarketing telecommunication at the beginning of the telecommunication.
Nymity: Why are telecommunications made for the purposes of surveys and market research exempt from the CRTC's Rules?
Webster Cole: The CRTC established rules to govern telecommunications made for the purpose of solicitation. Telecommunications made for purposes of surveys and market research are not considered solicitation as the organizations making these types of calls are asking for information, and not for consumers to purchase a product or to make a donation.
Nymity: What is the impact of being found non-compliant with the National DNCL Rules or the Telemarketing and ADAD Rules (i.e. the Unsolicited Telecommunications Rules)?
Webster Cole: For every contravention of the Unsolicited Telecommunications Rules, the CRTC may impose an administrative monetary penalty of up to $1,500 in the case of an individual and up to $15,000 in the case of a corporation.
Nymity: Would an organization calling someone on the National DNCL also be fond to be non-compliant with privacy legislation or regulations?
Webster Cole: The CRTC may also enforce the Unsolicited Telecommunications Rules, pursuant to the Telecommunications Act. If, in the course of an investigation, the CRTC finds that privacy legislation has been violated, it may refer the information to the appropriate authority.
Nymity: May an organization make a telemarketing telecommunication to a consumer on the National DNCL if that person has provided consent to be contacted?
Webster Cole: Consumers who provide consent may be contacted via a telemarketing telecommunications, even if they are registered on the National DNCL.
Nymity: Do the National DNCL Rules indicate the type of consent that is required?
Webster Cole: Yes, express consent is required to indicate that the consumer has authorized an organization to make a telemarketing telecommunication, and must include the consumer's telecommunications number. Accepted forms of consent including, among other things, written consent, oral consent and electronic consent. The onus is on the organization to demonstrate that valid express consent was provided by the consumer.
Nymity: How do organizations obtain the National DNCL?
Webster Cole: The National DNCL will be available to organizations via the National DNCL. Organizations will be able to download a list of numbers on the National DNCL. It will also be possible for an organization to check up to 10 numbers at a time by querying the website; this method is designed for use by organizations that only make a few telemarketing telecommunications.
Nymity: How often do organizations need to update their call lists?
Webster Cole: Organizations must not place a telemarketing telecommunications to a consumer who has been registered on the National DNCL for more than 31 days. It is recommended that an organization update their lists as often as needed to respect this time frame.
Nymity: Will their be a fee to obtain the National DNCL?
Webster Cole: Yes, organizations will be charged a fee for downloading the National DNCL. The purpose of this fee is to cover the costs of implementing and operating the National DNCL.
Nymity: Will consumers pay a fee to register their number on the National DNCL and how long will a consumer's number remain on the list?
Webster Cole: Consumers will be charged a fee to register on the list. Their numbers will remain on the list for three years and 31 days from the date of their registration.
Nymity: What kind of consumer and industry awareness campaign is planned and what kind of response is expected?
Webster Cole: The campaign targeted to consumers will emphasize how to register and what types of telemarketing telecommunications are exempt from the National DNCL. The campaign targeted to industry will provide information on how to obtain the National DNCL, what the fee structure will be, and how the CRTC will investigate complaints and enforce the Unsolicited Telecommunications Rules. The CRTC will utilize its own website, the National DNCL website, and other media, in partnership with consumer agencies and industry organizations, to raise public awareness.
Nymity: Do you expect that organizations will reduce their reliance on telemarketing? Will there be an increase in direct mail or other forms of advertising?
Webster Cole: The experience in other jurisdictions, where national do not call lists and registries have been implemented, indicates that organizations will continue to utilize marketing as an effective marketing tool. Anecdotal evidence has indicated that telemarketing is more effective as organizations are able to focus their efforts on consumers who are more receptive to telemarketing. Certainly, it can be expected that organizations will use other media to reach consumers who do not wish to receive telemarketing telecommunications.
Nymity: In closing, where can you subscribers learn more about the National DNCL Rules and the Telemarketing and ADAD Rules?
Webster Cole: Your subscribers can find more information on the CRTC's website. Telecom Decision 2007-48 can be found at http://www.crtc.gc.ca/archive/ENG/Decisions/2007/dt2007-48.htm; the Rules are located in the Appendix to the Decision. Additional information can also be found in the CRTC's National DNCL fact sheethttp://www.crtc.gc.ca/eng/INFO_SHT/t1026.htm and Telemarketing fact sheet http://www.crtc.gc.ca/eng/INFO_SHT/t1022.htm
The amendment to the Telecommunications Act can be found at http://www2.parl.gc.ca/HousePublications/Publication.aspx?Docid=2333920&file=4
The full Telecommunications Act can be found at http://laws.justice.gc.ca/en/T-3.4/?noCookie
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