Electronic Commerce Protection Act

An Act to promote the efficiency and adaptability of the Canadian economy by regulating certain activities that discourage reliance on electronic means of carrying out commercial activities, and to amend the Canadian Radio-television and Telecommunications Commission Act, the Competition Act, the Personal Information Protection and Electronic Documents Act and the Telecommunications Act

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

Sponsor

Tony Clement  Conservative

Status

In committee (Senate), as of Dec. 15, 2009
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment establishes a regulatory framework to promote the efficiency and adaptability of the Canadian economy by regulating certain activities that discourage reliance on electronic means of carrying out commercial activities.
It enacts the Electronic Commerce Protection Act, which prohibits the sending of commercial electronic messages without the prior consent of the recipient and provides rules governing the sending of those types of messages, including a mechanism for the withdrawal of consent. It also prohibits other practices that discourage reliance on electronic means of carrying out commercial activities, such as those relating to the alteration of data transmissions and the unauthorized installation of computer programs. In addition, that Act provides for the imposition of administrative monetary penalties by the Canadian Radio-television and Telecommunications Commission, after taking into account specified factors. It also provides for a private right of action that enables a person affected by an act or omission that constitutes a contravention under that Act to obtain an amount equal to the actual amount of the loss or damage suffered, or expenses incurred, and statutory damages for the contravention.
This enactment amends the Competition Act to prohibit false or misleading commercial representations made electronically.
It also amends the Personal Information Protection and Electronic Documents Act to prohibit the collection of personal information by means of unauthorized access to computer systems, and the unauthorized compiling of lists of electronic addresses.
Finally, it makes related amendments to the Competition Act, the Personal Information Protection and Electronic Documents Act, the Canadian Radio-television and Telecommunications Commission Act and the Telecommunications Act.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:20 p.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Madam Speaker, while I have read the bill very carefully, and I listened to my hon. colleague's position on it, the one thing that has been left out is a lot of very legitimate businesses make a lot of money on spam, such as the phone giants.

Every time a spam message goes to some teenager's cellphone, the teenager has to pay. The spammer does not get paid, the phone giants get paid. Kids, with their little cellphone accounts, have no ability to stop these spammers. The messages come in and they have to pay, month after month.

I would think it would be incumbent upon us, if we are truly to protect people from spam, to put into the legislation that the phone giants cannot make backhanded money off people who are dependent on their phones and get hit by these spammers.

Does the member not think it would be prudent for us to say that there should not be charges levied against people who are innocently victims of spam?

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:20 p.m.
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Conservative

Terence Young Conservative Oakville, ON

Madam Speaker, I presume when the member talks about the phone giants, he means the large telecommunications companies. I think what he is talking about is young people who already are paying, competitively compared to worldwide, too much for their cellphone bills are now paying too much for unsolicited messages.

That is part of the benefit of the bill. As spam reduces, young people will get fewer unsolicited emails and those bills will go down.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:20 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Madam Speaker, Internet security has been an emerging business, growing very rapidly over the last number of years now because of issues such as this.

Ten years ago the Manitoba government had security people earning $100,000 a year. We could not keep them because the banks were hiring them at more than double the price. This has been the effect of not having legislation in place all these years, allowing these spammers to be running free in our market.

The question really comes back to how committed the Conservative government is to this, beyond getting a nice press release out and some good coverage, like they did on the do-not-call legislation last year, but then doing very little enforcement?

It is incumbent upon us to tighten the noose around the government as much as we can to make certain that it has no option to get out of enforcing a very strong act.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:20 p.m.
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Conservative

Terence Young Conservative Oakville, ON

Madam Speaker, I want to point out what I mentioned in my remarks earlier, and that is the bill is accompanied by significant penalties.

Offences carry fines of up to $1 million for individuals and $10 million for businesses. These are not cost of doing business fines. These are very significant fines. Working in conjunction with authorities in the other parts of the world, where the Internet is getting clogged with spam and people's time is being wasted, we think they will be quite effective.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:25 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Madam Speaker, I was talking earlier about the do-not-call list. Page 56 of Bill C-27 talks about repealing sections 41(1) to 41(7) of the act, and that has to do with the do-not-call registry. Could the member comment on the fact that we saw some pretty serious problems with enforcement with the do-not-call registry and the do-not-call list?

I mentioned the fact that the first level of complaint was Bell. If Bell determined there was a valid complaint, it would then be referred to the CRTC. The CRTC issued 70 warning letters and levied no fines in relation to the do-not-call registry, even though the ability to levy a fine was within the act.

The fines in this legislation are much more serious. However, could the member specifically comment on the requirement for enforcement and what he sees as being important aspects of that enforcement?

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:25 p.m.
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Conservative

Terence Young Conservative Oakville, ON

Madam Speaker, enforcement is a matter of the words of the bill and the regulations in the bill and how the various parties want to enforce it.

It should be noted that the electronic commerce protection act will not abolish the do-not-call list. I think the member might be aware of that. There are published reports to that effect, and it is not true.

For greater certainty, there is a section of the bill that remains dormant until it is made law by an order-in-council and by regulation.

Section 6.7 of the electronic commerce protection act carves out telemarketing and interactive voice communications to be treated differently, but it does not repeal the do-not-call list.

On the matter of enforcement, I understand the bill is going to committee. There will be discussion at committee and we look forward to hearing the comments of the other parties on how that might be achieved.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:25 p.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Madam Speaker, I hope we will get the bill to committee. I have heard from the member and the parliamentary secretary that there is no power to cancel the do-not-call registry. Yet sections 41.1 to 41.7 of the act is the do-not-call registry.

Either the Conservatives are slipping it in the bill or they are not sure it is in the bill. Maybe they want to work with us at committee and go through the bill. I would be very wary about us going too far out front on giving our imprimatur to a bill that clearly is doing something the members are telling us it is not.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:25 p.m.
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Conservative

Terence Young Conservative Oakville, ON

Madam Speaker, I want to reassure the member opposite that there is no intention to repeal the do-not-call list.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:25 p.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Madam Speaker, why, then, is it in the bill? Should we strike it now before we send it to committee?

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:25 p.m.
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Conservative

Terence Young Conservative Oakville, ON

Madam Speaker, I will go over it again for the member. The electronic commerce protection act does not abolish the do-not-call list. Clause 6.7 carves out telemarketing by exempting interactive voice communications, facsimiles and voice recordings to telephone accounts from the application of the act.

The provision at the end of the bill, which is clause 86, allows for the repeal of the do-not-call list at the time of the government's choosing in the future. It does not repeal the list. It leaves the door open for greater certainty. Clause 86 will remain dormant until the government chooses to enact it by order-in-council.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:25 p.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Madam Speaker, I am very glad we finally dragged it out of the hon. member. It is in the bill, but it is not in the bill unless the government decides to enact it, so we would be giving the government the power to do that. The Conservatives have told the House again and again that it is not there, but now we finally see it is there, but they will only enact it when they choose to enact it.

Again, why is it in the bill? Why does the government not at least have the guts to come out and say that it completely blew it on the registry. It had no enforcement plan. This has been a complete debacle.

Now the Conservatives are slipping it in the bill and whenever they feel comfortable, they will remove it. Why not just tell the House of Commons that they blew it and they have to fix it? They put it in an anti-spam bill and they do not want to say that.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:30 p.m.
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Conservative

Terence Young Conservative Oakville, ON

Madam Speaker, it is worth going back to the purpose of the act. The intention of the proposed electronic commerce protection act is to reduce the most damaging and deceptive forms of spam and other computer-related threats that discourage the use of electronic commerce and undermine personal privacy. It will address spam that is malicious in content, those emails that attempt to lure Canadians into fraudulent transactions or counterfeit websites.

A recent scheme, of which the member may be aware, was the UPS re-shipping fraud scam. A fraudulent company, posing as UPS, sent out a spam in an attempt to lure individuals into receiving shipments and sending that shipment, which would usually be overseas, to a second party in turn for payment. Of course the payment never came.

The bill would provide tools for businesses and network providers to better protect the networks on which we purchase products and do our banking. It would provide better protection for our personal information online and prohibit the bulk sharing and compilation of electronic addresses.

I hope that helps the member.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:30 p.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Madam Speaker, I am very glad to rise to speak to this somewhat bizarre bill.

It is very clear that the government is setting up a bill to kill the do-not-call registry. It is talking about fraud. It is talking about fax machines. We push the government on question after question, and it tells us that just because it is in there does not mean it is actually in there. Then it asks us to speed the bill through. I would be very concerned about rushing through a bill brought forward by the Conservative government without doing due diligence.

Legislation is like trying to push a glacier. It is very cumbersome. People want to develop legislation for this, that or the other, and they tell us we have to have a law. Then we put in a law and we see the concerns. Any time the Conservatives try to bring in a law, they start howling up and down that the opposition are not willing to push it through right away. It tells us we are soft on crime because we do want to actually study a bill on mandatory minimums for furniture theft or whatever else they bring forward.

There are all kinds of booby traps in legislation. Legislation always has unintended consequences. If we do not do the due diligence, we end up using a hammer to whack a bunch of little pieces all over the place without necessarily getting what we wanted.

When we look at a bill, it has to be focused, and it to be focused right. So what are we focused on right now? The bill is focused on the issue of spam.

Is spam a problem? Spam is a big problem. Spam is a problem on two or three different levels. It is an irritant, number one. I get it all the time on my BlackBerry. There is a woman in some cafe who is waiting to meet me and she thinks I look great. This woman who emails me never has my first name. I go on my BlackBerry and someone is selling me products to make certain parts of my body bigger than they need to be. Then I go on my BlackBerry and someone is selling me a beautiful condo on a malaria-infested swamp. Those are irritants, and so I erase them. Sure it costs me a bit of time, but it is not that big a deal.

The bigger problem with spam is the use of it to defraud people across the world. Of course we know about the Nigerian 419 scam. When I ran my magazine, in the days when the fax machine was cutting-edge technology, we got these faxes from Nigeria or Bosnia, or wherever there was a crisis, from someone trying to get out of the country who needed some money. If we gave them money, we would get money back. Everybody knows the 419 scam. But it was cumbersome. It was slow. It had to be done on fax machines. It actually cost them money to do it, so they had to limit the number of scams they could get away with. Surprisingly, a lot of people got snagged in these kinds of frauds.

However, when we moved to digital technology, the ability of these fraud artists anywhere in the world to inundate millions and millions of Internet subscribers with fraudulent claims jumped astronomically, and the costs for doing it became almost nothing.

The vast majority of us look at those fraud emails, and we might be a little upset or we might laugh at them, and we erase them. However, they only need one in a thousand people or one in ten thousand people to succeed. People have lost their savings. There have been senior citizens who have been defrauded, or young people who have lost money. It is so hard to track these fraud artists down. An international effort is needed to deal with them. We have to be able to root these players out, and we have to be get them off our servers.

The other major problem with spam is the use of spyware technology and the use of Trojans, the malignant attempt to destroy people's personal or office computers. That is a level of destruction in our corporate economy that no jurisdiction should be willing to put up with. For all too long in Canada we have sat back and said it is the cost of doing business. However, it should not be the cost of doing business. We need a very clear set of laws to go after spammers, especially given the ability of spam artists to burrow into our computers, take our lists and reproduce them, or use our computers to send spam further and further afield.

The issue is that we need spam legislation. The New Democratic Party will be supporting spam legislation going to committee to ensure we have the tools to shut these operators down.

That being said, there needs to be due diligence. We need to look at this bill carefully, because it is a very large and cumbersome bill. There are a number of elements of this bill that are concerning. They really relate to how the Conservative government bungled the do-not-call registry.

We will go back to the do-not-call registry at a further point. But the idea behind the registry was great. That is how many laws are started. People phone an MP's office and say they are sick and tired of people calling them at home every day and they want something done about it. The government says, “Everyone is upset. We are going to act on it. We are going to have a do-not-call registry”.

Then we look at what happened with the do-not-call registry. The glaring gaps left millions of people who trusted in it exposed.

When there are unknown firms with cryptic names, such as “my broker office”, paying $50 so they can purchase all the numbers on that list in Toronto, we have a big problem. And when the CRTC allows companies with very dubious names to download those lists, we have a big problem.

When I am at work and I see a phone number on my BlackBerry and somebody is selling me a dodgy vacation in the Cayman Islands, I am thinking about how they got my parliamentary phone number. I think back to someone, somewhere paying $50 to get the list of all the Canadian phone numbers. That is a huge glaring problem.

Of course I could stand here and beat up on the Conservative government for completely blowing the registry and not thinking about it, but I am not going to do that. I am going to say that it meant well. Legislation is difficult. It set up a registry because it was responding to a problem. But there were gaping holes in it, and now we have a bigger problem.

The problem was that the lists were left open and all kinds of dodgy operations got access to them. Who knows where they are? They are not subject to Canadian law. They could be calling, for pennies, from anyplace around the world. We are stuck.

Our consumers are being exposed to fraudulent claims. I do not know how many times I have been told that the warranty on my car is just about done. Obviously they have never seen my Pontiac Sunfire or they would know the warranty was done on that a long, long time ago.

The other problem with the do-not-call registry is the enforcement mechanism. The government turned it over to the CRTC. The CRTC deals with just about everything under the sun. Being on the heritage committee, I am not going to beat up on the CRTC, but it can barely keep track of all the broadcast issues and the telecommunications issues.

The CRTC has the job of policing the do-not-call registry. Twenty thousand complaints a month are brought forward. As my colleague from Nanaimo—Cowichan put forward, Bell reviews those and decides which are the serious ones and which are not. Many of those get tossed out. I am not saying that Bell is tossing out the ones that might implicate itself, but at the end of the day there have been only 70 letters sent out calling for “corrective action”.

Of the 308 members in this House of Commons, how many have received dodgy phone calls from which this list is supposed to protect them? I bet there are 70 right here alone. Then we add our family members and people who phone our constituency offices and there are a lot more than 70 people who have had reason to complain.

For all the registry's hoopla, we have allowed millions of names to be siphoned off by fraud artists. There have been only 70 letters calling for corrective action. That is a big issue. It is an issue that needs to be addressed.

Talking about the complete failure of the phone registry brings us back to Bill C-27. There is one view that Bill C-27 might try to change the registry by saying there is an opt-in clause as opposed to an opt-out clause, that Canadians would not have to receive a message from anybody unless they have given prior consent.

This is where I have a problem with the enforceability of the bill. Requiring someone to get prior consent before they contact people, I think in the digital age is going to prove almost impossible. There might be people, who are not very active in the digital world, who do not want to be called unless they call the other people first, but the vast majority of transactions are happening without prior consent.

This is where we get into some real problems with the enforceability of the act. If we try to draw too wide a net on spammers, we are going to get caught up with a whole bunch of business transactions. Some of them are very legitimate and some are less so, but will we get to the spammers? I am concerned about this. I think we need to bring this to committee to hear from witnesses on how practical that provision would be.

If the government brings in an opting-in clause rather than an opting-out clause in this spammer's bill, then conceivably the opt-out clause for the phone registry would not be needed any more. Contrary to what the Conservative Party is telling us, on page 56, clause 86 says that sections 41.1 to 41.7 of the act would be repealed. That is the do-not-call registry.

We are being assured, after many, many questions to the Conservative ranks, that repealing the do-not-call registry is not the same as repealing the do-not-call registry. We would only repeal the do-not-call registry if it becomes law and then we decide to enact it.

We are being asked, as opposition members, to quickly push this legislation through so that once again we show we are tough on spammers. If it is in this legislation, then why not say it is in this legislation? Why not say we had a problem with the phone registry, we blew it and it is not working. The opt-out clause does not work so we are going for an opt-in clause. Put that on the table. The Conservatives did not do that. They have hidden it in the microscopic print.

That is not the way to enact legislation. Legislation is not hiding things in a bill and then calling on the opposition members to quickly vote for it to show they are supporting the government. We need to make sure this legislation will work.

The idea of multi-million dollar fines for major spam fraudsters is a perfectly reasonable solution. If we are going after the malignant spyware out there, we need serious criminal penalities. That has to be in the bill. The NDP supports that.

The problem, again, goes back to the dodgy way the phone registry played out with enforcement. Can we really expect that the CRTC, with its inability to respond to the 20,000 calls a month it got about the phone registry, is going to have the tools to go after these operators? That is the question.

I suggest that we need to look at thinning the bill down, making sure our legal teams have the clear mandate to go after the people we really need to go after, draw the net a little smaller and make sure we can do this under police powers. We are never going to get the spam cleared up until we have a way of enforcing it. At the end of the day it is very bulky, slow moving legislation that ends up being challenged in the courts. We support moving forward with this legislation, but it has to be done right.

In my time, I have seen many bills crafted in the House and passed with many nods, only to reveal a month or six months down the road that we did not see something.

For example, there was the voter registration bill. It went through once. New Democrats certainly were raising a hue and cry about problems with the bill at that time and a million rural people were disenfranchised. The bill had to be brought back a second time and there were still problems with it. We had legal experts and student organizations which said that, if we do not make the proper changes, hundreds of thousands of people will be disenfranchised and it will be subject to a court challenge. Now we have Elections Canada looking at that bill right now that had become law and it will probably be subject to a court challenge, which means it would come back for legislation again.

If we were in the private sector and did such a bad job once, twice and we were looking at it three times, everyone would get fired. Here, we just wait until it comes back to committee. I do not think that is a good enough way to do business.

On the issue of spam, of all the issues we argue about in the House of Commons, we can all agree no one likes spam. We can all agree that we want to be able to go after the fraud artists, but where we might diverge is on whether or not we rush through legislation that is not thought out.

So, we will support this going to committee. We want to see a bill that is enforceable, that hits the targets that it needs, and that it does not reproduce the debacle of the phone registry that started out as a good idea, but never delivered the goods.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:45 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Madam Speaker, I like the member's idea that we should try to focus and limit the bill as much as possible to deal specifically with the problem and involve police powers wherever possible. However, it is a good idea to have an opt-in approach rather than the approach before, the do-not-call list, which was basically negative option offers which is something that has been tried before and the public does not like it.

The question really becomes, if we go with an opting-in approach, then what do we do with all the businesses in Canada who have their existing customer base? Are we going to make them pay this added cost for them to contact and get permission from say, a thousand customers, to be able to communicate with them? Would we put in some sort of grandfathering provisions that say for existing customers, businesses could still carry on an existing relationship with them and contact them, but then for any new customers they would have to get permission?

I think that is actually being done, certainly on a provincial basis in Canada now by provincial regulated organizations which are over time getting the permission from customers to allow contact with them for various reasons. I would ask the member to comment on that because I really think he is onto something here. This is a very good idea he has just brought up.

Electronic Commerce Protection ActGovernment Orders

May 7th, 2009 / 4:50 p.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Madam Speaker, one of the things that the bill actually identifies is that if there is a prior business relationship there is no requirement to get that kind of prior consent. So that is an element that is a very common sense approach.

Where it becomes difficult is where people who do not want to receive it say, “I bought a hard drive from this company three years ago and they're still emailing me three and four years after. That is spam”. Then it becomes a question, are we starting to go after businesses that legitimately have a customer base? They email customers and that is how we get around it. If people then start to make complaints against them, saying they are spammers and want to be protected because prior consent was not given, nowhere did it say they were going to get emails. That is the problem.

We do not have a bill where we are tying up legitimate businesses who get big server lists. Every politician here has a big server list they email. Many people who get their email may think it is spam. If they do not like it, erase it, but it is still a legitimate process. The issue becomes what if we get a cumbersome law where businesses are going to get tied up as potential spammers. We need to isolate the kind of nefarious activity, namely spam, that is clearly useless, stupid, idiotic, and fraudulent. It is clogging up our networks and sometimes causing much more damage, and we have to be able to go after the spammers.