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, 3rd Session, which ended in March 2011.

Sponsor

Tony Clement  Conservative

Status

This bill has received Royal Assent and is now 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 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, 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.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 4:50 p.m.
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Bloc

Robert Bouchard Bloc Chicoutimi—Le Fjord, QC

Mr. Speaker, this is the third time in a year that I have risen in the House of Commons to discuss the bill on electronic commerce, known as Bill C-28 this time around.

The former Bill C-27 sparked a lot of public interest, and a number of witnesses who testified before the committee essentially told us that we needed to move forward in order to provide better protection for email users.

The new Bill C-28 specifically targets unsolicited commercial electronic messages. People have been demanding such a bill for some time, and it is sorely needed. Governments, service providers and network operators are all affected by spam. We must create safeguards for legitimate electronic commerce, and we must do so now. Commercial emails are also essential to the development of the online economy.

Bill C-28 was inspired primarily by the final report of the task force on spam, which was set up in 2004 to examine the issue and to find ways to eliminate spam.

Some groups had reservations about the former Bill C-27 and made suggestions for amendments. The main concerns and questions from these groups had to do with the enforcement of the legislation.

Parliamentary committee members had to examine a number of issues. Even now, this bill amends the Canadian Radio-television and Telecommunications Commission Act, the Competition Act, the Personal Information Protection and Electronic Documents Act and the Telecommunications Act.

As a result, government officials in each of these sectors came to tell us why and especially how the amendments would apply and how we could be certain the changes would be useful.

We supported the former Bill C-27 as amended by the committee. Therefore, we will support Bill C-28, whose contents are more or less the same, so that the committee can study it.

We are aware of the need to legislate quickly, but we must also proceed carefully in light of the many witnesses the committee has already heard from.

I hope that the work the committee has already done will prove useful and that we will be able to proceed more quickly.

Let us not forget that we first started talking about spam in 2004 and that six years on, we still do not have legislation to get rid of spam.

I would like to expand on one point. The government accused the committee of taking its time when studying this bill and of holding up the electronic commerce bill's progress.

I want to make one thing clear: Bill C-28 is not a back-of-the-napkin affair. It covers a number of complex issues and clauses. It is to be expected that committee members and our research teams be given the time to study the content of the bill. I am sure that this electronic commerce protection bill would be in force by now had the Conservative government not prorogued Parliament. We lost a lot of time because of that.

I want to reiterate that the Bloc Québécois and the other parties worked well on this. I can vouch for the fact that my party, the Bloc Québécois, and the members of the Standing Committee on Industry, Science and Technology worked constructively together.

I sincerely believe that during the committee's hearings, all of the members worked hard to find a solution to the spam problem while taking into account the needs of companies that shared their concerns.

Anyone with an email address receives spam, emails that try to sell us products and offer us prizes and many other annoying things.

I do not know if anyone has noticed, but in recent months, there seems to have been a significant increase in the amount of spam. It makes me wonder whether companies have made changes to how they contact consumers.

Obviously, some businesses are concerned about how legitimate businesses will continue to contact consumers if Bill C-28 is adopted.

Bill C-28 clearly states that organizations will not require the express consent of their own clients to communicate with them in what can be deemed “existing business relationships”. However, to contact potential clients in order to market a good or service or to expand their activities, businesses may not directly contact a client by email without their prior consent.

Unsolicited electronic messages have become a significant social and economic problem that undermines the individual productivity of Quebeckers. Spam is a threat to the growth of legitimate electronic commerce.

Spam accounts for more than 80% of global electronic traffic, which results in considerable expenses for businesses and consumers. In light of this situation, legislation to protect electronic commerce is reasonable and appropriate.

On another note, some clauses of the bill are still problematic for the Bloc Québécois. We would like further information about the national do not call list.

A number of parallels may be drawn between the system proposed by Bill C-28 and the existing system for telephone calls.

The Bloc Québécois feels that the current list is doing the job, and it is used by millions of people. Compliance with the national do not call list required many companies to reorganize their resources and make a large financial outlay.

We realize that the Minister of Industry wants to keep the door open in order to replace the list with a new system. However, for the time being, it is a proven system that has been successful since it was implemented in 2008. At the committee hearings on Bill C-28 regarding electronic commerce, we were given verbal assurances by officials that it would not be abolished without public hearings.

Let us come back to Bill C-28. I believe we are all concerned about the way businesses obtain consumers' consent to transfer or pass on their contact information or email addresses to other organizations. The new legislation will enable us to reduce spam and go after unsolicited commercial emails.

To the Bloc Québécois, there is no doubt that the bill aims at protecting the integrity of transmission data by prohibiting practices related to the installation of computer programs without consent. It makes sense to avoid the use of consumers' personal information to send them spam.

Bill C-28 prohibits the collection of personal information via access to computer systems without consent and the unauthorized compiling or supplying of lists of electronic addresses.

We can hardly be against motherhood and apple pie. The Bloc Québécois feels that companies that want to send consumers information by email should get their consent first. It is a matter of principle.

This bill has a noble objective, but it will be a complex law to apply. I know the government wants to attack spam, and I agree with that. In my previous speeches and having had the chance to be part of the Standing Committee on Industry, Science and Technology, I personally have been convinced of the need to pass such a bill.

A number of countries have already passed measures similar to those in Bill C-28 and seem to have had positive results. The various laws passed in Australia, the United States and Great Britain to combat spam have apparently been quite successful.

Bill C-28 will make it possible to develop measures to dissuade as many people and businesses as possible from sending spam involving false representation, unauthorized software and exchanges of email address information.

This bill will help resolve many of the problems our constituents have raised and will further protect their privacy. Unsolicited commercial electronic messages have become, over time, a major social and economic problem that undermines the individual and commercial productivity of Quebeckers.

Spam is a real nuisance. It damages computers and networks, contributes to deceptive marketing scams, and invades people's privacy. Spam directly threatens the viability of the Internet. In fact, spam accounts for over 80% of all global Internet communications. Thus, spam directly threatens the viability of the Internet as an effective means of communication. It undermines consumer confidence in legitimate e-businesses and hinders electronic transactions.

Basically, this electronic commerce protection act governs the sending of messages by email, text messaging or instant messaging without consent. Transmission of spam to an electronic mail account, telephone account or other similar accounts would be prohibited.

The only time spam may be sent is when the person to whom the message is sent has consented to receiving it, whether the consent is express or implied. This is what we mean by “prior consent”.

I would like to close by reiterating that the Bloc Québécois supports Bill C-28. This proposed legislation has already been examined by a parliamentary committee, and it will help to increase the protection of computer systems and people's personal information.

As a final point, the Bloc Québécois is pleased to see that Bill C-28 takes into account most of the recommendations in the final report of the task force on spam, created in 2004. However, it is unfortunate that the legislative process took several years to produce this long-awaited bill to protect electronic commerce.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:05 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, I am rising to speak on behalf of New Democrats on Bill C-28.

I want to start by acknowledging the good work the hon. member for Windsor West has done on the anti-spam legislation, both the current piece and the previous piece of legislation that was before the House.

New Democrats will be supporting Bill C-28 at second reading to get it to committee. Of course, as always, I know that the members of the industry committee will do their due diligence in reviewing the bill thoroughly to make sure that there are no clauses of the bill that could have unintended consequences.

I want to speak briefly. I spoke to this bill back in May 2009 when it was Bill C-27. I was fortunate enough to sit in on some of the industry committee's hearings on the anti-spam legislation. I want to start by reading into the record a definition of spam. I think most of us in the House know what spam is, but not all the Canadians who may be listening to this debate may be aware of what it is.

Spam is identified as the “abuse of electronic messaging systems, including most broadcast media digital delivery systems, to send unsolicited bulk messages indiscriminately. While the most widely recognized form of spam is email spam, the term applies to similar abuses in other media: instant messaging, Usenet newsgroups spam, web search engine spam, spam in blogs, wiki spam, online classified ads spam, mobile phone messaging spam, Internet forum spam, junk fax transmissions...and file sharing networks.”

Spam seems to infiltrate every single aspect of our lives these days, and it is extremely important for the Canadian government to take this on.

I want to read a brief statistic from an article by Peter Nowak on July 14. He wrote that New Brunswick is hardest hit in Canada. It reads:

New Brunswick receives the most spam email of the Canadian provinces while nearby Newfoundland and Labrador gets the least, according to a report from security firm Symantec. About 92.5 per cent of email in New Brunswick qualified as spam over a 10-month period.

It goes on to say:

That was the worst rate in the country and the only province to exceed the global average of 89.3 per cent.

New Brunswick, British Columbia and Saskatchewan exceeded the Canadian average of 88 per cent. Newfoundland and Labrador fared best with only 86 per cent of email considered spam, followed by Quebec, Nova Scotia and Manitoba at 87 per cent, Ontario at 87.5 per cent and Alberta at 87.6 per cent.

I know that the hon. member for Windsor West has identified this before, but we need to recognize that Canada is actually in the top 10 in the world. We are the only G8 country that does not have this type of legislation.

When one starts thinking about the fact that a province like New Brunswick, where 92.5% of all email in the province is spam, one can see that we have a very serious problem facing us.

I want to turn briefly to the legislative summary, because there are a couple of aspects of this bill that I think are important to note. Other members have pointed this out, but I would like to highlight the fact that we have been talking about anti-spam legislation for a number of years.

In fact, the legislative summary says that this act is a culmination of a process that began with the anti-spam action plan for Canada launched by the Government of Canada in 2004, which established a private sector task force, chaired by Industry Canada, to examine the issue of unsolicited commercial email, or spam. By the end of 2004, spam, which is in many ways the electronic equivalent of junk mail, had grown to encompass 80% of all global email traffic.

It goes on to talk about the fact that the task force issued a report in May 2005 examining the spam situation in Canada and recommended, among other measures, that legislation specifically aimed at combatting spam be created.

That was 2004, and here we are in 2010. We are once again debating legislation. The initial legislation, Bill C-27, was lost when the House prorogued. So we again have lost time dealing with an issue that is extremely important to businesses, consumers, and ordinary citizens in this country.

This is a complex piece of legislation. It is many pages long and it impacts on a number of different agencies.

The agencies that are involved in the regulation of spam include the Competition Bureau, the Office of the Privacy Commissioner and the CRTC. In addition to setting up a regulatory scheme to deal with spam in Canada, the bill gives these agencies the power to share information and evidence with international counterparts in order to deal with spam coming from outside the country. It goes on again to emphasize the fact that Canada is the last of the G8 countries to introduce anti-spam legislation.

One of the points raised in this legislative summary is the fact that Canada, in some respects, is seen on the international market as a haven for some of these spammers from outside the country because of our lack of legislation. The legislative summary goes on to say that the act:

will provide a clear regulatory scheme including administrative monetary penalties, with respect to both spam and related threats from unsolicited electronic contact, including identity theft, phishing, spyware, viruses, and botnets. It will also grant an additional right of civil action to businesses and consumers targeted by the perpetrators of such activities.

At the very end of the Bill C-27 legislation, when it was introduced, were a couple of clauses that dealt with the do not call list. Again, Bill C-28 has the same inclusion in the legislation. It says that they

would give the government the power to repeal legislation for the relatively new Do Not Call List for telemarketers. Since it was introduced in 2008, the Do Not Call List has been subject to much criticism owing to telemarketer misuse of the names on the list.

I want to refer to another aspect of that. It says that:

The delayed set of amendments provides the framework for replacing the do not call list with a new scheme at a future date, as described earlier in the summary. The powers to be restored with the delayed amendments include the power to regulate the hours during which such communications can be made, the contact information that must be provided by the communicator and the way in which it must be provided, and the use of automated telephone calls.

The reason I raise this in the context of Bill C-28 is that this inclusion of the ability to amend the do not call list legislation is important to note, because the do not call list legislation actually was flawed. That is why it is important that the House refer the bill back to the industry committee for a thorough review.

Now I know that we had hearings on Bill C-27, and there have been some amendments to this legislation as a result of those hearings, but it is important that we reconsider this legislation and make sure that there are not any unintended consequences such as we saw with the do not call list.

There are a couple of other aspects of this legislation that are important to note as a result of industry hearings and the input that was heard. Clause 66 in Bill C-28 now allows for a review three years after the day on which the section comes into force.

[A] review of the provisions and operation of this Act must be undertaken by any committee of the Senate, of the House of Commons, or of both Houses of Parliament that is designated or established for that purpose.

It is very important that the mandate to review the legislation three years after coming into force is in place again so that we can determine if there have been further changes in the whole electronic media that would require some further amendments. We can determine whether the piece of legislation is effective. We can determine if adequate resources have been put in place in order to make sure that the agencies involved have what they need to oversee and enforce the legislation.

I think others have referred to the very substantial fines that are now in place to make sure that there are some teeth to this piece of legislation.

There are a couple of aspects of the legislation that came up when it was under study when it was Bill C-27. I want to turn to an analysis that was done by a law firm called McCarthy Tétrault that pointed out a couple of aspects that raised some concerns. I want to outline the summary of a couple of these aspects. One of these was about consent. It says that the legislation contains certain exceptions to the rule about consent. It says that consent is not required

to send a commercial electronic message, the purpose of which is to provide a quote or an estimate; facilitate, complete or confirm an existing commercial transaction; provide warranty information; provide information related to an ongoing subscription, membership, account or loan; provide information related to an employment relationship; or deliver a product, goods or a service, including product updates and upgrades.

It goes on to say that the list is not exhaustive, and that other purposes may be specified in the regulations.

I am bringing this up because business has raised concerns. Some in the business community think that this legislation is too onerous, that it would not allow businesspeople to communicate with their customers or potential customers.

Clearly, the legislation has made some attempt to recognize that there is an ongoing business relationship that needs to be maintained, and it has outlined situations in which that consent would not be required.

It goes on to say:

The bill also provides for certain situations where consent can be implied, including where:

- the sender has an existing business relationship with a recipient (provided the relationship is entered into within the specified time frames);

- the recipient has “conspicuously published” its electronic address and has not indicated a desire to not receive unsolicited commercial electronic messages, and the message is relevant to the recipient's business role; or

- the recipient has provided its electronic address to the sender without indicating a wish not to receive unsolicited commercial and electronic messages.

When requesting express consent to send unsolicited commercial messages, an organization would have to set out “clearly and simply” the purpose(s) for which the consent is being sought, information identifying the organization that is seeking the consent, and any other information that may be prescribed.

The [act] also stipulates the electronic message must:

- identify the sender;

- provide contact information for the sender; and

- include an “unsubscribe” mechanism....

I think what is required of businesses is clear, as are the references to the protection for consumers. It does not appear that these are going to be onerous.

I want to touch on a couple of other aspects that are important when we are talking about the viability of business.

When it was Bill C-27, Professor Michael Geist appeared before the industry committee. I know he was talking about Bill C-27, but I think some of his comments are applicable to Bill C-28. He stated:

The introduction of Bill C-27 represents the culmination of years of effort to address concerns that Canada is rapidly emerging as a spam haven. I don't think I have to convince you that spam is a problem, whether it's the cost borne by consumers, schools, businesses, and hospitals in dealing with unwanted e-mail, or the shaken confidence of online banking customers who received phished email. There is a real need to address the problem.

Professor Geist identified that there was an impact on businesses. Many times in this House we have heard concerns raised about Canadian productivity in the workplace. When we understand the volume of spam that is coming in, whether it is via email, text messaging, or electronic media that businesses are using, we can understand the concern about the impact on business productivity.

There are varying statistics about the amount of time it takes for workers to recover when they are interrupted in a task. Many of us in this House can attest that, even though we have a good filter on our email system, we are still occasionally bothered by spam.

Imagine in a regular workplace where up to 90% of emails may be spam if there are not adequate filters in place. Every time they have to go through their email box and clear emails, or they are interrupted in their work, it affects the business's productivity, its quality, its performance. I saw a statistic that every time workers were interrupted at a task, it took them up to seven minutes to get back to where they had left off. So we can see that this has a definite impact on workers' ability to perform well in their jobs.

The other aspect of this, and it can be quite troubling, is the effect on seniors. Despite the unfair stereotype, I believe many seniors are absolutely email literate. They rely on email to communicate with loved ones, to do business, and to do all the things that Canadians under the age of 65 do.

One of the real concerns about spam is that seniors and other unsuspecting people end up being fraudulently sold goods or services.

Another important purpose of the bill is to protect vulnerable citizens from spam, whether it is banking fraud or investment fraud. I think many of us have received those unfortunate emails from overseas that tell us to send money to get somebody out of jail. It is sad that unsuspecting Canadians have sent money, only to learn that their money has gone down the tubes. That is an important aspect of the bill.

Professor Geist also raised another issue when he did his presentation to the committee. He said:

Let me conclude with a warning against what I see as some lobbying efforts to water down what I see as reasonable standards found in this legislation. I note that we have seen this before. It is what took place with the do-not-call list. The bill started with good principles, faced intense lobbying, and I think some scare tactics, and by the end of the process Canadians were left with a system that I think is now widely recognized as a failure, with some estimates saying that more than 80% of the calls that used to come, continue to come, and with security breeches around the do-not-call list itself.

I think we must avoid a similar occurrence with respect to the anti-spam legislation. Changes in some business practices might be scary to some, but we cannot allow scare tactics to persuade you from moving forward with this much-needed legislation.

In that context, when businesses are looking at the potential costs of complying with the legislation, getting the appropriate consent, and doing all the things that are laid out in the legislation, it is important to encourage them to consider the costs of dealing with the amount of spam that is out there.

In conclusion, New Democrats will be supporting Bill C-28 to go to committee for further review, and we are optimistic that perhaps this time it will actually get through the House.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:25 p.m.
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Liberal

Alan Tonks Liberal York South—Weston, ON

Mr. Speaker, I am sure that the House has been convinced by the insightful arguments in support of the bill that have been put forward by the member.

The member made reference to the national do not call list and the experience that has been gained from it. I wonder if she could expand on this a bit. From other speakers, there has been some suggestion that the experience has not been as successful as it could have been. She mentioned a number of spam issues, including the vulnerability of seniors and the huge cost to businesses. I know that at the beginning the chamber of commerce had some concerns with respect to the national do not call list. I wonder if she could expand a bit on what that experience has been, what we have learned from it, and how we could make the anti-spam legislation more substantive and effective.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:25 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, there were many problems with the do not call list. One was that industry ended up regulating itself in this matter. The departments involved with the do not call list had few resources for enforcement and oversight, and the original do not call list legislation was much stronger than what ended up being passed, because it was eventually watered down.

There were a number of challenges, including lists that were accessed by organizations that had no entitlement to them. As I pointed out, roughly 80% of the calls that were being made before the do not call list continued to be made. That is an ineffective piece of legislation, which is why we have additions in Bill C-28 to deal with the do not call list, and why the bill gives the government an opportunity to deal with the list.

If the government ends up amending regulations affecting the do not call list, it is important that the House oversees these amendments, so that we do not end up in the same quagmire that we experienced in the original legislation.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:25 p.m.
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Bloc

Robert Bouchard Bloc Chicoutimi—Le Fjord, QC

Mr. Speaker, I thank my colleague for her speech. This bill contains some very important measures that the public has been waiting for to regulate electronic commerce.

A task force was created by the Liberal government in 2004. Can the member tell me why it has taken so long to arrive at Bill C-28?

Six years have passed since 2004. I would like to hear what my colleague has to say about that.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:25 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, this is an enormous problem that affects business productivity and the safety and security of our citizens. Yet it has been six years and we still do not have the legislation in place. That speaks to the challenges in this place. First, there is a lack of political will. Spam is not a problem that has risen just in the last couple of years. Second, we had a bill before the House that could have dealt with the problem, but the Conservative government chose to prorogue the House, so once again a needed piece of legislation was shelved.

I hope that people will now become seized of this issue and we will be able to get the bill to committee, do the necessary review, and get it passed in the House to protect businesses and our citizens.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:30 p.m.
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NDP

Niki Ashton NDP Churchill, MB

Mr. Speaker, my colleague reflected on the unfortunate delays surrounding this issue. I would like to hear her comments on what it means to our position in the world when it comes to taking a leadership role and supporting not just individuals but businesses as they look to the future. Our government has a duty to protect Canadian businesses and individuals. The younger generation of Canadians who use technology to a much greater extent is calling on the government to provide leadership.

I would be interested in hearing my colleague's thoughts on what has happened so far and why we are not where we need to be.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:30 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, the member for Churchill raised the point that electronic media, particularly social media, is changing so quickly that it feels as though we are always behind in attempting to regulate it, in attempting to use it.

It is important that the legislation before us be flexible enough to deal with the changing electronic market. It must also be rigorous enough to impose penalties. The agencies responsible for it must have the necessary resources for enforcement. When I spoke about the do-not-call list, I mentioned that oversight was largely left up to industry. That is like leaving the fox in charge of the henhouse. We support this legislation, but we need to make sure that the mechanisms to enforce it will be there.

The member also asked why this legislation has been delayed. Sadly, we had more than one prorogation. For this reason, we were not able to deal with some of the critical issues facing our businesses and citizens, and anti-spam legislation was one of those.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:30 p.m.
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Bloc

Raynald Blais Bloc Gaspésie—Îles-de-la-Madeleine, QC

Mr. Speaker, I have a comment and a question. Last week, the Conservatives said in this House that Bloc Québécois members could not co-operate to help get bills passed. If they were looking for co-operation last week, we have a perfect example today. The Bloc Québécois is co-operating by supporting this anti-spam bill.

A bill can always be improved. What changes would the member like to see?

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:30 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, there were two aspects of the member's question.

I want to touch on the matter of co-operation for one moment. It is always interesting to me that members in the House are criticized for doing due diligence, for taking the time to study a bill thoroughly, taking the time to ensure that there are no unintended consequences and that Canadians are being well served by the legislation.

I would argue that it is part of our responsibility as elected representatives to ensure that the legislation that comes before us is solid legislation that we can support, legislation that we can go home and talk to our constituents about.

With respect to Bill C-28, I would agree with the member that it sounds as if the House is co-operating to get the bill to committee for further review, but I also think it is incumbent upon us to study the bill thoroughly and make sure that it is a good piece of legislation for Canada.

On the second aspect of the member's a question, in respect of the changes that we might want to see in this piece of legislation, we need to look at how the three-year parliamentary review might affect the bill. I raise this because my understanding of this practice is that it requires a three-year review, after coming into force, of all aspects of the legislation. If the bill is phased in, we might want to take a look at the effects of this time frame.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:35 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I believe it was the minister in his address to the bill who said that we were looking at $130 billion in losses throughout the world economy.

I would be interested in knowing how he came up with that figure and what Canada's portion of that loss would be.

The fact of the matter is that the government has waited for six years to get this legislation through. Yet the House could resolve the Karla Homolka pardon issue in a day and a half.

The question is, if the government is so concerned about this, then why has it not done something before now?

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:35 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, I am not in a position to speak to the government's motives or its priorities, but it is clearly an urgent priority for businesses and for citizens in this country.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:35 p.m.
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Edmonton—Mill Woods—Beaumont Alberta

Conservative

Mike Lake ConservativeParliamentary Secretary to the Minister of Industry

Mr. Speaker, I am pleased to participate in today's debate on second reading of Bill C-28, Fighting Internet and Wireless Spam Act, or FIWSA.

The online marketplace represents a major segment of Canada's economy, with some $62.7 billion in sales in 2007. That same year, the Information Society Index report published by the International Data Corporation projected that worldwide electronic commerce would exceed $9.6 trillion by 2010.

We have now reached the year projected by the Information Society Index and we must think in terms of a digital economy that will soon surpass $10 trillion in revenue. Let me put this in context. That is over six times the size of the Canadian economy and it continues to grow. Those economies that do not tap into the phenomenal growth of online commerce will miss out on opportunities for prosperity and quality of life in the 21st century.

While the digital economy is growing, so also grow the threats that can undermine it. In 2009, the annual security report released by MessageLabs Intelligence estimated that nearly 90% of worldwide email traffic was spam. These unsolicited commercial electronic messages impose costs on consumers and businesses. They tie up bandwidth, they tie up time, and when they contain malware they impose real threats on consumer confidence in the digital economy.

Canada is one of only four countries in the OECD that does not have laws governing spam. We are the only country in the G7 not to have regulations fighting the problems associated with spam, but we are about to change that. In fact, with this bill, Canada will move from laggard to leader. We will be at the forefront of global efforts to fight spam and related online problems.

The bill before us addresses unsolicited commercial electronic messages as well as installation of malware and interference with electronic transmissions. It contains safeguards for consumers and businesses against illegitimate electronic marketing practices. This bill takes a multi-faceted approach to protect consumers and businesses. It implements a clear regulatory enforcement regime that is consistent with international best practices.

When passed into law, this bill would be enforced by three organizations.

First, the Canadian Radio-television and Telecommunications Commission, the CRTC, would be able to investigate and take action against the sending of unsolicited commercial electronic messages, the altering of transmission data and the installation of computer programs on computer systems and networks without consent.

The second organization tasked with enforcing this bill is the Competition Bureau, which would address deceptive practices and representations online. This includes false or misleading headers and website content.

Finally, the Office of the Privacy Commissioner would be able to take measures against the unauthorized collection of personal information by access to a computer found to be contrary to an act of Parliament and the unauthorized compiling or supplying of lists of electronic addresses.

Further, both the CRTC and the Competition Tribunal would be given authority to impose administrative monetary penalties, or AMPS, on those who violate the respective provisions of this bill.

These AMPS are significant. The CRTC would be able to impose fines of up to $1 million per violation for individuals and $10 million for businesses. The Competition Bureau would apply to the Competition Tribunal to seek AMPS under the current regime in the Competition Act. That regime allows for penalties of up to $750,000 for individuals, with $1 million for subsequent violations, and up to $10 million for businesses, with $15 million for subsequent violations.

When it comes to stopping spam through these kinds of penalties it is clear that these government agencies will have very sharp teeth. Indeed, where penalties of this nature have been applied in other countries, the amount of spam originating from those countries dropped significantly.

The point I would like to emphasize is that we do not need to turn to police forces to put a stop to spam and other related online problems. We can very effectively use the existing specialized agencies.

The Office of the Privacy Commissioner would use its existing tools and enforcement framework to enforce the provisions of this legislation. The Privacy Commissioner's powers to cooperate and exchange information with her international counterparts under the Personal Information Protection and Electronic Documents Act would be expanded. The enforcement bodies would be able to share information and evidence with their international colleagues so that together international partners would be able to pursue spammers.

In addition to the work of the three regulatory agencies, businesses and individuals would do their part to put an end to spam and related online nuisances. Under this bill, they would have the private right of action against those who have violated the law.

Finally, let me say a few words about the importance of education and awareness to ensuring that individuals and businesses take the right steps to combat spam. In support of this bill, the government will promote education and awareness through the efforts of a national coordinating body.

We will also create a spam reporting centre, which consumers and businesses may contact to report spam and related threats. The spam reporting centre would collect evidence and gather intelligence to help the three enforcement agencies with their investigations. Also, the spam reporting centre would track and analyze statistics and trends in spam and other related online threats.

To conclude, Bill C-28 would make Canada a world leader in anti-spam legislation by providing a more secure online environment for both consumers and businesses. I hope that the House will move quickly to send this bill through the system. I urge hon. members from all parties to join me in supporting it.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:40 p.m.
See context

Liberal

Joe Volpe Liberal Eglinton—Lawrence, ON

Mr. Speaker, it is wonderful to be able to hear that there is actually some intent to move along and get some legislation in place.

I am looking for how these mechanisms that the parliamentary secretary is speaking about are actually going to work. By my count, he has about another 12 minutes to go in his elaboration of the merits of this bill. I wonder whether he will use up the rest of the time available in order to convince the House that he actually does have the magic wand that is going to make things work.

I know he has the support of the opposition members. He certainly has our support if he wants the bill to go to second reading and get the items in detail. I wonder if he could give us a flavour of just how this is going to work so that we can applaud him as we go along. Otherwise we are just going to have to be critical and see if we can get to the meat of the matter.

Fighting Internet and Wireless Spam ActGovernment Orders

September 27th, 2010 / 5:40 p.m.
See context

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Mr. Speaker, that was an interesting question. I am not exactly sure what the question was.

I assume that the hon. member does not really have a real question, because of course, the bill went before committee and went through a rigorous committee hearing. Members from all parties had the opportunity to hear from witnesses. Of course, we passed the bill through the committee stage and again at third reading here in the House.

My hope is that we will be able to move this bill along. Based on the statement the hon. member made, I assume that we will have the cooperation of his party.

I can speak a little about the impact of the bill. Of course, as has been mentioned in the hearings before, the cost of spam to Canadian businesses and consumers is tremendous. We are talking about $3 billion a year in terms of lost productivity and all the various effects of spam, malware, spyware, and all the different things associated with spam. It is an area where Canada unfortunately is actually a world leader, so to speak.

Other countries that have implemented measures similar to what we are implementing here have seen a significant and immediate drop in their rankings in terms of spam originating from their countries.

For example, Australia was rated in the top 10 in terms of spam origination. Almost immediately after passing legislation, it dropped to, I believe, number 17 in the world.

I think we can agree that this is a significant problem. We hope to have the cooperation of all parties of the House.