Digital marketing rules with heavy penalties
The Canadian Real Estate Association (CREA) notified their members today that they have been advised that “the government is close to finalizing new rules for marketing by e-mail, text messaging and other forms of electronic communication, which will impact the way REALTORS® communicate with clients.”
The Anti-Spam bill which is in the Canadian government’s final stages of legislation spells out terms in which Realtors can contact or market to potential, current and past clients electronically over email and text and violations by individual Realtors come with a penalty of up to $1 million and for corporations up to $10 million and additionally, consumers will have the right to sue for damages.
Canadian Realtor Andrew McKay said, “there are bigger problems such as agents taking only 3 photos with a cheap phone for listing, blatant lies on the listing, etc. Make the fine 10k or 20k and Realtors will take notice. Make it 1 mil and they will think that’s never going to happen. Teach realtors that spam back fires.”
The new electronic marketing measures
According to CREA’s email, these are the 10 points of the Electronic Marketing legislation that Canadian Realtors must know:
1) With a few exceptions, REALTORS® will no longer be able to send electronic messages to clients or potential clients without their consent.
2) Consent will be implied for REALTORS® to send electronic messages to a client for two years following a real estate transaction and six months after an inquiry from a potential client.
3) A transitional provision allows REALTORS® to send electronic messages to clients without their consent for three years, provided the relationship existed before the new rules come into force.
4) The onus is on the REALTOR® to prove consent; therefore you must document that consent has been obtained by a recipient.
5) When obtaining consent, REALTORS® must set out the purpose for which the consent is being sought, as well as information identifying them. More details about obtaining consent will be included in the regulations issued for the legislation, which have not been drafted yet.
6) REALTORS® will need to ensure each electronic message contains their contact information, an unsubscribe mechanism, and any other information set out in the forthcoming regulations.
7) Consent will be implied and REALTORS® will be able to follow up by email with new contacts they meet at networking functions, so long as the electronic message is relevant to the recipient’s business.
8.) Consent will not be implied for REALTORS® to follow up on a referral unless the potential client provides their express consent, or has a personal, family or existing business relationship with the REALTOR®.
9) REALTORS® who fail to comply with these new electronic marketing rules could face administrative monetary penalties of up to $1 million for individuals and $10 million for corporations. In addition, individuals who receive unsolicited electronic marketing materials from a REALTOR® could launch a private right of action and sue for monetary compensation.
10) Telephone marketing continues to be governed by the Do Not Call List rules. In the future, the government may include telephone marketing under the same electronic marketing compliance regime.
Will this trickle to America?
The implications of this legislation are huge and the Canadian government is not joking around. Will this trickle to America? It’s not likely, we barely have enforceable do not call laws on the books (yes, they’re there as are RESPA laws that require lenders to respond in a specific window of time), and the laws do not have penalties quite this steep.
Canadians and Americans alike should be very careful with how they are marketing in the digital era and the Canadian government is going to make sure that Canadians will. Tell us in comments what you think of this news.
