CASL and Text Messaging: A Plain-Language Guide for Canadian Businesses
How Canada’s anti-spam law applies to business texts: when you need consent, what every text must include, how STOP works, and what the penalties are.
- CASL covers text messages, not just email.
- A commercial text needs three things: consent, identification of who sent it, and a way to unsubscribe.
- You can’t text someone to ask for consent unless you already have their consent.
- Opt-outs must take effect within 10 business days. Most texting tools do it instantly.
- Penalties reach $1 million per violation for individuals and $10 million for businesses.
Canada’s Anti-Spam Legislation, usually called CASL, has been in force since July 1, 2014. Most businesses know it applies to email newsletters. Fewer realize it applies just as much to text messages. The CRTC, which enforces it, says plainly that CASL covers SMS and other messaging to mobile phones.
This guide explains what the law asks of a business that texts its customers, in plain language, with the section of the law behind each point.
Which texts does CASL cover?
CASL applies to commercial electronic messages. A text is commercial if one of its purposes is to encourage someone to take part in a commercial activity: buying, selling or leasing something, or taking up a business, investment or gaming opportunity. A promotion, a seasonal offer or a “book your spring tune-up” text are all commercial.
A text doesn’t stop being commercial because it also does something else. If an appointment confirmation also pitches a discount on your next visit, it’s a commercial message.
The three requirements
Under section 6 of the Act, you may only send a commercial text if:
- You have the person’s consent, either express or implied.
- The text identifies you, and anyone you’re sending on behalf of, with a way to contact you.
- The text includes an unsubscribe mechanism.
All three apply to every commercial text, whether it goes to one person or ten thousand.
Consent: express or implied
Express consent means the person clearly agreed to receive your messages, out loud or in writing. For example, they ticked an unticked box on your booking form, or said yes on a recorded call. It doesn’t expire until they withdraw it.
Implied consent comes from your relationship with the person, and it runs out:
- A purchase or lease from you gives implied consent for 2 years from the purchase.
- An inquiry or application, such as asking for a quote, gives implied consent for 6 months from the inquiry.
If you claim consent, you have to prove it. The CRTC is clear that the burden falls on the sender. Keep a record of how and when each person agreed. Our guide to express and implied consent covers the details, including how to calculate the clocks.
You can’t text to ask for consent
This one catches many businesses. Section 1(3) of the Act says a message asking for consent is itself a commercial electronic message. So a text saying “Reply YES to get our offers” needs consent of its own.
In practice, ask for express consent where you already meet people: on your website, your booking or intake form, at the counter, or in a phone call you record. Or ask by text while you still have implied consent, before it expires.
Texts that don’t need consent
Section 6(6) lists messages that don’t need consent, though they still need identification and an unsubscribe mechanism. They include texts that solely:
- give a quote or estimate the person asked for;
- facilitate, complete or confirm a transaction they already agreed to, such as a booking confirmation;
- give warranty, recall, safety or security information about something they bought or use;
- give factual information about their ongoing subscription, membership, account or loan;
- relate directly to their employment or a benefit plan;
- deliver a product or service, including updates, they’re entitled to under an earlier transaction.
The key word is solely. Add a promotion to a booking confirmation and it needs consent again.
Section 6(5) goes further and takes some messages out of CASL entirely. These include messages between people with a personal or family relationship, and a message to a business that consists solely of an inquiry about what it sells.
Identifying yourself
Every commercial text must name the business sending it, and any business it’s sent on behalf of. It must also give contact information: a mailing address plus a phone number, email address or website. Texts are short, so the regulations let you put this information on a web page and include a clear link to it in the message instead. We cover the exact requirements, with examples that fit in a single text, in what every commercial text must include.
Unsubscribing
Section 11 sets the rules for opting out:
- It must cost the person nothing. Replying to the text counts.
- The CRTC’s guidance says people should be able to reply STOP or Unsubscribe, or follow a link to a page where they can opt out.
- The unsubscribe option must keep working for at least 60 days after you send the message.
- You must act on an opt-out without delay, and within 10 business days at the latest.
Once someone opts out, that withdrawal applies to every commercial text you would send them, whatever kind of consent you had before.
Penalties and enforcement
The CRTC can impose administrative monetary penalties of up to $1 million per violation for individuals and $10 million per violation for businesses. Directors and officers can be held personally liable if they directed, authorized or took part in a violation. A business can defend itself by showing it exercised due diligence, which is where written policies, staff training and consent records matter.
CASL also included a private right of action, which would have let individuals sue senders directly. It was due to start on July 1, 2017, but the government postponed it indefinitely, and it isn’t in force.
A quick checklist
- Every contact has a recorded consent type and date, or a reason no consent is needed.
- Implied consents are tracked against their 2-year or 6-month expiry.
- Consent forms use unticked boxes and say you can withdraw at any time.
- Every commercial text names your business and links to your contact information.
- Every commercial text says how to opt out, such as “Reply STOP to opt out.”
- STOP replies are honoured immediately and kept on record.
- You never text people to ask for consent unless you already have it.
Let Tidewire track CASL consent for you
Tidewire records each contact’s consent and when it expires, skips anyone without valid consent on bulk sends, adds your business name and opt-out wording, and honours STOP and ARRÊT instantly. French texts cost the same as English.
Get early accessSources
- Canada’s Anti-Spam Legislation, S.C. 2010, c. 23
- Electronic Commerce Protection Regulations (CRTC), SOR/2012-36
- CRTC frequently asked questions about CASL
- CRTC guidance on implied consent
- CRTC Compliance and Enforcement Information Bulletin 2012-548
- Government of Canada, fightspam.gc.ca
- BLG, CASL: Government suspends private right of action (Order in Council P.C. 2017-0580)
This article is general information, not legal advice. Laws and guidance change, so check the sources below or ask a lawyer about your situation.