Spamming Canadians Results in $100,000 Penalty for nCrowd’s Corporate Director
OTTAWA and GATINEAU, QC, April 23, 2019 /CNW/ – The CRTC today imposed a $100,000 penalty on Mr. Brian Conley for violations of Canada’s anti-spam legislation (CASL) committed by nCrowd. This is the first time an individual is held liable under CASL for violations committed by a corporation.
Operating under multiple business names (notably nCrowd, Teambuy, DealFind, and Dealathons), nCrowd sent unsolicited commercial emails to Canadians. nCrowd offered promotional vouchers for discounted rates on products, such as electronics, or services, such as beauty treatments, to be redeemed by consumers from third-party suppliers. Those offers were advertised in multiple email campaigns, repeatedly spamming Canadians.
Complaints submitted by Canadians to the Spam Reporting Centre prompted the CRTC to investigate. Based on the evidence gathered, the CRTC found that nCrowd’s unsolicited commercial emails were sent without the recipient’s consent and the unsubscribe mechanism did not function properly.
“As this decision shows, individuals can’t hide behind their company’s structure or online entities. Today’s outcome sends a strong message that they can – and will – be held liable for the spam the companies they control send to Canadians. Those who send commercial emails to Canadians must comply with Canada’s anti-spam law at all times, or face the consequences.” – Steven Harroun, Chief Compliance and Enforcement Officer, CRTC
- Online threats, such as spam and malware, are taken seriously by the CRTC. With domestic and international partners, the CRTC actively pursues investigations of alleged violations under CASL.
- Canadians and private entities are encouraged to report spam, malware and other electronic threats to the Spam Reporting Centre. Each report provides valuable information.
- CASL is designed to protect Canadians from online threats, while ensuring businesses can compete in the global marketplace.
- Information collected through the Spam Reporting Centre is used by the CRTC, the Competition Bureau and the Office of the Privacy Commissioner to enforce CASL.
- The CRTC can impose penalties of up to $1 million per violation for individuals and up to $10 million per violation for businesses.