SMS Messaging Regulations in Canada

Canada's primary legal framework governing SMS communications is Canada's Anti-Spam Legislation (CASL). CASL is a federal law that regulates the sending of "commercial electronic messages" (CEMs), which include SMS/text messages, email, and similar electronic messages. In essence, CASL does not ban marketing texts outright, but sets strict requirements: senders must (1) obtain consent from recipients, (2) identify themselves in the message, and (3) include an unsubscribe mechanism. These requirements apply whenever a message is a CEM – defined as a message that has any purpose of encouraging participation in a commercial activity. Notably, CASL explicitly covers SMS and other mobile messages, whereas voice calls (telemarketing calls) and faxes are governed separately by the CRTC's Unsolicited Telecommunications Rules (e.g. the National Do Not Call List). This means text messages are subject to CASL rules rather than the do-not-call rules that apply to phone calls.

Regulatory Authorities

CASL is enforced by multiple federal agencies. The Canadian Radio-television and Telecommunications Commission (CRTC) is the lead enforcement agency for spam and text violations – it monitors complaints, investigates non-compliance, and can issue administrative monetary penalties (AMPs). The Competition Bureau and the Office of the Privacy Commissioner (OPC) also have enforcement roles (the Competition Bureau addresses fraudulent or misleading marketing practices in electronic messages, while the OPC addresses issues like harvesting addresses or installing malware). All three agencies share intelligence through the Spam Reporting Centre database. The CRTC has broad powers under CASL, including the ability to levy fines up to $1 million per violation for individuals and up to $10 million per violation for businesses. These steep penalties underscore the importance of compliance.

CASL and Provincial Laws

CASL is a federal law and generally supersedes provincial laws regarding spam. There are no separate provincial "anti-spam" statutes for SMS; CASL provides a uniform framework across Canada. However, provincial laws can still be relevant in specific contexts. For example, consumer protection and privacy laws in provinces may apply to how businesses handle personal information (like phone numbers) and may require transparency and fair handling of marketing practices.

A notable provincial consideration is Quebec's language law. In 2022, Quebec passed Bill 96, which strengthens the Charter of the French Language and requires that consumers in Quebec have the right to be served in French. Brands operating in or messaging to Quebec must provide French-language content of equal quality to any English content. In practice, this means marketing SMS sent to Quebec phone numbers should be in French or bilingual, unless the recipient has explicitly requested English. Non-compliance with Quebec's language requirements can draw scrutiny from provincial regulators (e.g. the Office québécois de la langue française) – an important consideration for nationwide campaigns. Aside from language, most SMS rules (consent, opt-out, etc.) are governed by CASL uniformly, so provincial variations are minimal.

Consent is the cornerstone of Canada's SMS regulations. Under CASL, businesses cannot send commercial SMS to Canadian recipients without first obtaining the recipient's consent, unless a narrow exception applies. There are two types of consent recognized:

Express Consent

The recipient has explicitly agreed to receive your messages (e.g. by signing up, ticking an unchecked box, or verbally saying "yes"). Express consent is opt-in only – using pre-checked boxes or assuming consent from silence is prohibited. The user must take a positive action to indicate consent. Express consent does not expire by time, so you can continue messaging until the person revokes it, provided the messages remain within the scope of what was consented to (e.g. the topics or frequency promised). Importantly, the burden of proof is on the sender – you must be able to demonstrate evidence of consent (e.g. consent forms, logs, checkbox records) if challenged. Best practice is to capture and store timestamped records of when and how each subscriber opted in.

Implied Consent

CASL allows implied consent in certain situations, typically where a relationship already exists. Common cases include: an existing business relationship (e.g. the person purchased a product or service, or made a business inquiry) or an existing non-business relationship (e.g. membership in a club, a donation to a charity). Implied consent is time-limited – for instance, if someone buys something, you have up to 24 months from that transaction date to send CEMs under implied consent, and if someone merely inquired or applied (but didn't purchase), the window is 6 months. Implied consent also applies if a recipient publicly publishes their contact (e.g. on a website) and your message relates to their professional role, provided they haven't stated they don't want unsolicited messages. However, relying on implied consent can be risky if misinterpreted (for example, an abandoned shopping cart with an email/number entered might not count as a valid inquiry). The CRTC advises, "if you are unsure, ask for express consent" rather than stretching implied consent scenarios.

Opt-Out Requirements

Regardless of consent type, recipients must always be able to opt out. CASL mandates that every commercial SMS include a clear and functional unsubscribe mechanism. In the context of SMS, this typically means informing users they can reply with a keyword (commonly "STOP") to unsubscribe. The unsubscribe mechanism must be simple, free, and accessible – for texts, simply replying "STOP" (or the French equivalent "ARRET") is the standard. The CRTC recommends offering both English and French opt-out keywords (e.g. "Text STOP/ARRET to unsubscribe") or providing an unsubscribe URL in the text. The opt-out request must be honored within 10 business days (CASL gives senders up to 10 days to remove the number from lists). Additionally, the unsubscribe method must remain valid for at least 60 days after the message is sent (in case a user waits to opt out).

Identification Requirements

Along with consent, commercial SMS messages must identify the sender. The message should include the business name and contact information (such as a phone number, email, or website) or a clear link to that info. CASL regulations specify that a valid physical mailing address (or PO Box) be provided in CEMs. Since SMS has character limitations, it's acceptable to provide a shortened link to a webpage containing full contact and address details if it's not feasible to include in the text itself. The key is that recipients should know who is messaging them and how to contact that entity.

For example, a compliant marketing text might say: "XYZ Corp: Don't miss our sale – 20% off today! Opt-out reply STOP. Help: 1-800-123-4567 or visit xyz.com. Msg&Data rates may apply." This covers identification and opt-out instructions in a concise format.

Failing to meet consent and opt-out obligations can lead to complaints and enforcement. In fact, over half of spam complaints by Canadians relate to lack of consent (51%), and a significant portion relate to absence of proper identification or opt-out. These statistics reflect that consumers are quick to report texts they never signed up for or cannot easily unsubscribe from. To avoid penalties, businesses must implement robust consent capture processes and automated opt-out handling for their SMS campaigns.

Not all text messages are treated equally under Canadian regulation. CASL specifically targets commercial electronic messages, meaning messages that have a commercial purpose (such as advertising or promotion of products/services, business opportunities, etc.). However, there are many SMS messages that are transactional or informational in nature – for example, a bank sending a one-time passcode, a retailer sending a shipment notification or e-receipt, or an airline sending a flight update. These transactional SMS are often essential to providing a service and may not be primarily commercial in their intent.

Transactional (Service) Messages

If a text message solely provides information about an ongoing transaction or customer relationship, and does not have the purpose of promoting or selling something, it may fall outside the definition of a CEM. Examples include: a password reset code, order confirmation, shipping tracking number, appointment reminder, or a notice of a product recall or warranty information. Under CASL, several categories of messages are exempt from the consent requirement (and in some cases from CASL entirely). For instance, messages that facilitate or confirm a transaction the recipient already agreed to (e.g. a receipt or shipping confirmation) or that provide warranty, safety, or recall information about a product the person purchased are exempt from needing prior consent. Likewise, messages that deliver factual information about a subscription, membership, or loan the person is involved with are exempt. In these cases, you do not need express or implied consent to send the message. In fact, CASL's regulations carve out these transactional communications so that important service communications aren't blocked by the law.

However, even if consent isn't required for a purely transactional SMS, other requirements may still apply. If the message arguably falls under CASL's scope (for example, it has any promotional content alongside the transaction info), it's safest to include identification and an opt-out. The law states that if a message is exempt from consent due to one of the transactional exceptions, the content must strictly stick to that purpose – any marketing material inserted would nullify the exemption. A common best practice is to avoid mixing marketing with transactional content. For example, a shipping notification should not contain a line like "Since you liked that product, check out our new arrivals!" – that turns it into a CEM requiring consent. If a business wants to include marketing in a service message, they must treat it as a commercial message and ensure consent is on file.

Do transactional texts require an unsubscribe option?

Under CASL, if a message is truly not a CEM (no promotional aspect), then CASL's requirements technically do not apply – meaning an unsubscribe mechanism isn't legally mandated. For instance, a pure one-time PIN code message or fraud alert from your bank, where no goods or services are promoted, is not a CEM. In such cases, it would be odd to offer "unsubscribe" because the messages are service-essential (opting out of fraud alerts or OTPs could be detrimental to the user). CASL does not require an opt-out in messages that are entirely exempt (and it even exempts such messages from identification requirements). That said, the line can sometimes blur – so many organizations choose to include at least minimal identification and a way to manage messages even in transactional texts. The CRTC has indicated, for example, that if a message is part of an ongoing series (like subscription alerts), it's good customer practice to allow consumers to manage those notifications. One guideline suggests offering an "opt-down" or preferences center in transactional emails/SMS, so users can control frequency. Again, this is more a best practice than a strict rule for truly service messages.

Commercial Messages

In contrast, any SMS that has a marketing or promotional element is a commercial message and fully subject to CASL. This includes obvious cases like advertising offers, coupons, sales alerts, loyalty program promotions, etc. It also includes less blatant cases – e.g., an SMS that primarily is a service notice but tacks on "visit our site for more deals" would likely be deemed to have a commercial purpose. Commercial SMS require prior consent (express or valid implied) and must include the required identification and opt-out on every message. There is no exemption for small businesses or nonprofits when they are sending marketing messages, although registered charities and political organizations have some leeway under CASL (charities can rely on implied consent for donors, and political messages that solicit votes or donations are actually exempt from CASL as they're not considered "commercial" activity).

The key distinction is whether a message is considered to have a promotional "commercial" purpose. If yes, it's regulated as a marketing message under CASL. If no (pure service content), it may be unregulated by CASL. When designing SMS programs, companies should segment their messaging: transactional notifications via one dedicated number or channel, and marketing campaigns via another. This not only helps with compliance (you can apply opt-out rules properly) but also aligns with carrier expectations – as we'll see, carriers treat high-volume marketing traffic differently than one-to-one service messages.

Canada's telecommunications ecosystem provides several options for sending SMS to consumers, each with its own rules and best practices. The main origination channels for Application-to-Person (A2P) SMS in Canada are: short codes, toll-free numbers, and local 10-digit long codes. Canada shares the +1 country code with the U.S., and Canadian SMS networks have similar policies to U.S. carriers in many respects (with some unique Canadian nuances).

Sender ID Constraints

Unlike some regions where alphanumeric sender IDs (a custom text name as the sender) are common for SMS, in Canada alphanumeric sender IDs are not supported by mobile carriers. All SMS to Canadian users must originate from a valid phone number or short code that the carriers recognize. In practice, this means the "From" address on messages to Canada can't be a name like "MyBank" – it must be a number (either a 10-digit North American Numbering Plan number or a 5-6 digit short code). Generic senders such as "INFO" or "SMS" are also prohibited. If an international message enters Canada's network with an unsupported sender (e.g., an overseas alphanumeric ID), carriers will likely overwrite or block it. This ensures accountability – the sender can be traced to a number.

Canadian Short Codes

Short codes are 5-6 digit special numbers specifically meant for high-volume A2P messaging. They are ideal for mass marketing, alerts, and two-factor authentication at scale, because they support high throughput (typically 50-100 messages per second or more, depending on carrier). In Canada, short codes are managed via an industry body (the Canadian Wireless Telecommunications Association, CWTA) in cooperation with wireless carriers. To obtain a short code, a business (or their SMS aggregator) must go through an application and approval process. The campaign use-case must be defined in detail, including example messages, opt-in method, and compliance with content guidelines. Express consent is mandatory before texting users on a short code – carriers will not approve programs that lack a proper opt-in process. For example, "friend referral" campaigns where the user hasn't directly opted in are generally rejected by carriers.

Toll-Free SMS

Toll-free numbers (800, 888, 877, 866, 855, 844, 833 series) can be enabled for SMS in Canada. Many businesses use toll-free SMS because it provides a unified number for voice and text communications. Toll-free SMS has moderate throughput capabilities and is suitable for customer service, appointment reminders, and moderate-volume marketing campaigns. Like short codes, toll-free SMS requires registration and verification with carriers for A2P messaging. Unregistered toll-free traffic may be filtered or blocked by carriers to prevent spam.

10-Digit Long Code (10DLC) Registration

Standard 10-digit phone numbers can be used for SMS messaging, but carriers have implemented registration requirements for A2P traffic to prevent spam and ensure compliance. The 10DLC registration process requires businesses to register their brand and specific messaging campaigns with carriers. This system, similar to the U.S. implementation, helps carriers identify legitimate business messaging and filter out spam. Unregistered 10DLC traffic may face severe limitations or blocking, making registration essential for reliable message delivery.

Cross-Border Messaging Considerations

Canada and the U.S. share the North American Numbering Plan, which can create complexities for SMS routing and compliance. Messages between Canadian and U.S. numbers may be subject to regulations in both countries. Canadian businesses sending to U.S. numbers must comply with U.S. regulations (such as TCPA), while U.S. businesses sending to Canadian numbers must comply with CASL. Carriers on both sides of the border have implemented filtering and blocking systems that may affect cross-border messaging.

Carrier-Specific Requirements

Major Canadian carriers (Rogers, Bell, Telus, and their subsidiaries) each have specific requirements for A2P messaging. These carriers have implemented content filtering, spam detection, and compliance monitoring systems. They may require additional documentation or have specific approval processes for certain types of campaigns. Businesses should work with carrier-approved aggregators who understand the specific requirements of each network.

Canada has established a robust enforcement framework for SMS regulations, with multiple agencies responsible for monitoring compliance and imposing penalties for violations. The enforcement system is designed to protect consumers from spam and ensure businesses follow proper consent and identification requirements.

Canadian Radio-television and Telecommunications Commission (CRTC)

The CRTC is the primary enforcement agency for CASL violations related to commercial electronic messages, including SMS. The Commission has broad investigative powers and can impose significant administrative monetary penalties (AMPs) for non-compliance. The CRTC operates the Spam Reporting Centre, which collects and analyzes consumer complaints about unwanted electronic messages. They conduct investigations based on complaints and may also initiate compliance audits of businesses engaged in electronic marketing.

The CRTC's enforcement approach includes both reactive investigations (responding to complaints) and proactive compliance monitoring. They have established clear enforcement priorities, focusing on cases involving lack of consent, inadequate identification, and failure to provide proper unsubscribe mechanisms. The Commission also works with international partners to address cross-border spam and coordinates with other Canadian agencies to ensure comprehensive enforcement coverage.

Penalty Structure and Amounts

CASL provides for substantial penalties to deter violations and ensure compliance. Administrative monetary penalties can reach up to $1 million per violation for individuals and up to $10 million per violation for corporations. The actual penalty amount depends on factors such as the nature and scope of the violation, the harm caused, the violator's compliance history, and their ability to pay. The CRTC has issued penalties ranging from tens of thousands to hundreds of thousands of dollars for SMS-related violations.

Competition Bureau Role

The Competition Bureau enforces CASL provisions related to false or misleading electronic messages and unauthorized installation of computer programs. For SMS messaging, this includes cases where messages contain false or misleading claims about products, services, or promotional offers. The Competition Bureau can investigate deceptive marketing practices in SMS campaigns and impose penalties for violations that fall under their mandate.

Office of the Privacy Commissioner

The Privacy Commissioner of Canada addresses CASL violations related to the collection of electronic addresses without consent and the unauthorized installation of computer programs. While less directly involved in SMS enforcement, the Privacy Commissioner may investigate cases involving improper collection or use of phone numbers for marketing purposes, particularly when combined with other privacy violations.

Provincial Enforcement

While CASL is federal legislation, provincial consumer protection agencies may also play a role in SMS-related enforcement, particularly for issues that fall outside CASL's scope or involve broader consumer protection concerns. Provincial agencies may investigate complaints about unfair business practices in SMS marketing or coordinate with federal agencies on complex cases.

Compliance Monitoring and Audits

The CRTC conducts regular compliance monitoring activities, including audits of businesses engaged in electronic marketing. These audits may examine consent documentation, message content, unsubscribe processes, and record-keeping practices. Businesses may be required to provide detailed documentation of their SMS marketing practices and demonstrate compliance with CASL requirements.

The Canadian SMS regulatory landscape has seen several important developments in 2024-2025, reflecting the evolving nature of mobile communications and the need to address emerging challenges in spam prevention and consumer protection.

Enhanced 10DLC Registration Requirements

Canadian carriers have implemented more stringent registration requirements for 10-digit long code messaging, following similar trends in the United States. These requirements now mandate comprehensive business verification, detailed campaign descriptions, and ongoing compliance monitoring. The registration process includes verification of business credentials, documentation of consent mechanisms, and approval of message content templates. Unregistered 10DLC traffic faces increasingly severe restrictions, with some carriers blocking unregistered business messaging entirely.

Increased Enforcement Activity

The CRTC has significantly increased its enforcement activities in 2024-2025, with a particular focus on SMS violations. Notable enforcement actions include substantial penalties for businesses that failed to obtain proper consent or provide adequate unsubscribe mechanisms. The Commission has also enhanced its coordination with provincial consumer protection agencies and international partners to address cross-border spam and compliance issues.

Recent enforcement cases have established important precedents for SMS compliance. The Hudson's Bay Company case, which resulted in a $120,000 penalty, highlighted the importance of maintaining proper consent documentation and ensuring that implied consent is not overextended beyond its legal limits. Other cases have emphasized the need for clear identification in messages and functional unsubscribe mechanisms.

Carrier Content Filtering Enhancements

Canadian mobile carriers have implemented advanced content filtering and spam detection systems to protect consumers from unwanted messages. These systems use artificial intelligence and machine learning to identify potential spam messages and may automatically block or filter suspicious content. Carriers have also enhanced their collaboration with international partners to address cross-border spam and grey route messaging.

Quebec Language Law Updates

The implementation of Quebec's Bill 96 has created additional compliance requirements for businesses sending SMS to Quebec residents. The law requires that commercial communications be available in French and that French be given priority in bilingual communications. This has implications for SMS marketing campaigns targeting Quebec consumers, requiring businesses to provide French-language versions of their messages and ensure compliance with provincial language requirements.

Privacy Law Developments

The proposed Consumer Privacy Protection Act (CPPA), while not yet enacted, would introduce new requirements for businesses handling personal information, including phone numbers used for SMS marketing. The legislation would require enhanced consent mechanisms, greater transparency in data collection and use, and stronger consumer rights regarding personal information. Businesses should prepare for these potential changes by reviewing their data handling practices and consent mechanisms.

The Canadian SMS regulatory landscape is expected to continue evolving in response to technological advances, consumer protection needs, and international coordination efforts. Several key trends and potential changes are anticipated for 2026 and beyond.

CASL Modernization and Amendments

The Canadian government has indicated interest in reviewing and potentially updating CASL to address emerging technologies and communication methods. Potential amendments may include enhanced provisions for artificial intelligence-generated messages, updated consent mechanisms for new technologies, and strengthened enforcement tools. The review process may also consider alignment with international best practices and coordination with trading partners.

Rich Communication Services (RCS) Regulation

As RCS messaging becomes more prevalent in Canada, regulators are expected to develop specific guidelines for this enhanced messaging platform. RCS offers features such as verified sender identification, rich media content, and interactive elements, which may require specialized regulatory approaches. The CRTC is likely to issue guidance on RCS compliance, consent requirements, and content standards to ensure consumer protection while enabling innovation.

Enhanced Consumer Protection Measures

Future regulatory developments may include enhanced consumer protection measures such as universal opt-out mechanisms, improved spam reporting systems, and stronger penalties for repeat violators. The CRTC may also implement more sophisticated monitoring and enforcement tools, including automated compliance checking and real-time message analysis.

International Coordination and Standards

Canada is expected to continue enhancing its coordination with international partners, particularly the United States, to address cross-border spam and ensure consistent regulatory approaches. This may include harmonized standards for message authentication, sender verification, and cross-border enforcement cooperation. The development of international standards for mobile messaging security and compliance is likely to influence Canadian regulatory approaches.

Artificial Intelligence and Automated Messaging

The increasing use of artificial intelligence in message generation and customer communications is expected to prompt regulatory attention. Future regulations may require disclosure when AI is used to generate messages, establish standards for AI-driven consent mechanisms, and address liability issues related to automated decision-making in marketing communications.

Privacy Law Integration

The anticipated enactment of the Consumer Privacy Protection Act and potential updates to provincial privacy laws will likely create additional compliance requirements for SMS marketing. These may include enhanced consent standards, data minimization requirements, and stronger consumer rights regarding personal information used in marketing communications.

The Canadian SMS ecosystem involves multiple stakeholders, each with specific obligations and responsibilities for ensuring compliance with CASL and related regulations. Understanding these roles is essential for effective compliance and successful SMS marketing campaigns.

Mobile Carrier Obligations

Canadian mobile carriers (Rogers, Bell, Telus, and their subsidiaries) have significant responsibilities for protecting their networks and subscribers from spam and unwanted messages. Carriers must implement content filtering systems, monitor for spam and abuse, and cooperate with regulatory authorities in enforcement activities. They are required to provide mechanisms for consumers to report spam and must take action against senders who violate their acceptable use policies.

Carriers also have obligations related to number management and sender verification. They must ensure that A2P messaging traffic is properly registered and verified, implement appropriate security measures to prevent unauthorized access to their networks, and maintain records of messaging traffic for regulatory and security purposes. Carriers may block or filter messages that appear to violate regulations or their own policies.

SMS Platform and Aggregator Responsibilities

SMS platforms and aggregators serve as intermediaries between businesses and mobile carriers, facilitating message delivery while ensuring compliance with regulations and carrier requirements. These platforms have obligations to verify their customers' identities and business purposes, monitor message content for compliance violations, and implement appropriate consent and opt-out mechanisms.

Platforms must maintain detailed records of their customers' campaigns, including consent documentation, message content, and delivery statistics. They are responsible for ensuring that their customers understand and comply with CASL requirements and must have procedures for addressing violations and complaints. Many platforms provide compliance tools and guidance to help their customers meet regulatory requirements.

Marketing Platform Obligations

Marketing platforms and customer relationship management (CRM) systems that include SMS capabilities have responsibilities for ensuring that their tools support CASL compliance. This includes providing mechanisms for obtaining and documenting consent, implementing proper opt-out procedures, and maintaining compliance records. These platforms should provide clear guidance to their users about regulatory requirements and best practices.

Business and Marketer Responsibilities

Businesses and marketers who send SMS messages bear primary responsibility for CASL compliance. They must obtain proper consent before sending commercial messages, ensure that messages include required identification and opt-out information, and maintain detailed records of consent and messaging activities. Businesses are responsible for monitoring their messaging practices and ensuring ongoing compliance with all applicable regulations.

Marketers must also ensure that their messaging practices align with their privacy policies and other legal obligations. This includes proper handling of personal information, compliance with provincial regulations (such as Quebec's language requirements), and coordination with other marketing channels to ensure consistent compliance approaches.

Third-Party Service Provider Obligations

Third-party service providers, including lead generation companies, data brokers, and marketing agencies, have obligations to ensure that their services support CASL compliance. Lead generation companies must ensure that consent obtained through their processes meets CASL requirements and is properly documented. Data brokers must ensure that phone number lists are obtained and used in compliance with privacy and anti-spam laws.

Shared Compliance Responsibilities

All stakeholders in the SMS ecosystem share responsibility for maintaining the integrity and trustworthiness of mobile messaging. This includes cooperation in addressing spam and abuse, sharing information about compliance best practices, and working together to implement technical and procedural improvements that enhance consumer protection while enabling legitimate business communications.

CASL has extraterritorial reach, meaning that foreign companies sending commercial electronic messages to Canadian recipients must comply with Canadian regulations regardless of where they are located. This creates important compliance obligations for international businesses and presents both challenges and opportunities for foreign companies seeking to reach Canadian consumers.

Extraterritorial Application of CASL

CASL applies to any commercial electronic message sent to a Canadian electronic address, regardless of where the sender is located. This means that a company based in the United States, Europe, Asia, or anywhere else in the world must comply with CASL when sending SMS messages to Canadian phone numbers. The law also applies to messages sent from Canada to recipients in other countries, creating compliance obligations for Canadian companies with international operations.

The extraterritorial application of CASL reflects the global nature of electronic communications and the need to protect Canadian consumers from spam regardless of its origin. Foreign companies cannot avoid CASL compliance by arguing that they are not subject to Canadian jurisdiction if they are sending messages to Canadian recipients.

Compliance Challenges for Foreign Companies

Foreign companies face several challenges in complying with CASL, including understanding Canadian legal requirements, obtaining proper consent from Canadian recipients, and implementing appropriate identification and opt-out mechanisms. Companies may need to adapt their global messaging practices to meet Canadian requirements, which may differ from regulations in their home countries or other markets.

Language requirements, particularly Quebec's French language requirements, can create additional challenges for foreign companies. Businesses may need to provide French translations of their messages and ensure that their consent mechanisms and opt-out procedures are available in both English and French.

Technical Implementation Requirements

Foreign companies must ensure that their SMS messaging systems can properly handle Canadian phone numbers and comply with Canadian carrier requirements. This may require working with Canadian SMS providers or international providers with Canadian capabilities. Companies must also implement proper consent tracking and opt-out mechanisms that meet CASL requirements.

Enforcement and Penalties for Foreign Companies

The CRTC has enforcement authority over foreign companies that violate CASL when sending messages to Canadian recipients. While enforcement against foreign entities may present practical challenges, the Commission has successfully pursued cases against international companies and can impose significant penalties for violations.

Foreign companies may also face indirect enforcement through their service providers, as Canadian carriers and SMS platforms are required to ensure compliance with CASL. This means that foreign companies using Canadian messaging services must meet the same compliance standards as domestic businesses.

Best Practices for Foreign Companies

Foreign companies should develop comprehensive CASL compliance programs that address consent management, message content requirements, and opt-out procedures. This may include adapting global messaging templates to meet Canadian requirements, implementing Canadian-specific consent mechanisms, and training staff on CASL compliance requirements.

Companies should also consider working with Canadian legal counsel or compliance experts to ensure that their messaging practices meet all applicable requirements. Regular compliance audits and monitoring can help identify and address potential issues before they result in enforcement actions.

Achieving and maintaining compliance with Canadian SMS regulations requires a comprehensive approach that addresses consent management, message content, technical implementation, and ongoing monitoring. The following strategies and best practices can help businesses ensure compliance while maximizing the effectiveness of their SMS marketing efforts.

Consent Management Best Practices

Effective consent management is the foundation of CASL compliance. Businesses should implement clear, unambiguous consent mechanisms that allow recipients to understand exactly what they are agreeing to receive. This includes providing specific information about message frequency, content types, and the business sending the messages. Consent forms should be designed to require active opt-in rather than relying on pre-checked boxes or implied agreement.

Message Content and Identification Standards

All commercial SMS messages should include clear identification of the sender, including business name and contact information. Due to character limitations in SMS, businesses may provide abbreviated identification with a link to complete contact information. Messages should be concise, relevant, and provide clear value to recipients to minimize opt-out rates and complaints.

Opt-Out Mechanism Implementation

Implement robust opt-out mechanisms that allow recipients to easily unsubscribe from messages. The standard approach is to include "Reply STOP to opt out" or similar language in each message. Opt-out requests should be processed immediately and automatically, with confirmation sent to the recipient. Maintain suppression lists to ensure that opted-out numbers are not inadvertently re-added to messaging campaigns.

Technical Infrastructure and Monitoring

Implement technical systems that support compliance monitoring and enforcement. This includes automated consent verification, message content scanning, delivery tracking, and opt-out processing. Regular monitoring of delivery rates, opt-out rates, and complaint rates can help identify potential compliance issues before they become serious problems.

Staff Training and Compliance Culture

Ensure that all staff involved in SMS marketing understand CASL requirements and compliance procedures. Regular training should cover consent requirements, message content standards, opt-out procedures, and record-keeping obligations. Establish clear accountability for compliance and regular compliance reviews to ensure ongoing adherence to requirements.

Vendor and Partner Management

When working with SMS platforms, aggregators, or other service providers, ensure that they understand and support CASL compliance requirements. Establish clear contractual obligations for compliance support and regular compliance monitoring. Verify that all partners have appropriate technical and procedural safeguards in place to support your compliance efforts.

Regular Compliance Audits

Conduct regular internal compliance audits to identify and address potential issues. These audits should review consent documentation, message content, opt-out procedures, record-keeping practices, and technical systems. Consider engaging external compliance experts for periodic independent assessments of your SMS marketing practices.

Cross-Border Compliance Considerations

For businesses operating across multiple jurisdictions, develop compliance frameworks that address the requirements of all relevant jurisdictions. This may require implementing the most restrictive requirements across all markets or developing jurisdiction-specific compliance procedures. Regular monitoring of regulatory developments in all relevant markets is essential for maintaining ongoing compliance.