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

October 18th, 2010 / 4 p.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, it has become a very clear pattern of how the government will use the levers of power for personal vendettas to attack and attempt to destroy the reputation of critics. It is becoming very disturbing.

The incident that happened during the Copenhagen conference almost slipped by without any real public comment because the media were not paying attention. Government members were getting embarrassed, as they should, by their horrific stand on the tar sands and lack of international commitments, a situation that has obviously come back and bit them with their humiliating vote last week at the UN. However, they went after an ISP provider, serverloft, which responded because the Canadian government told it to shut down sites immediately. In order to do that, it had to interfere with a wide block of ISP server addresses and shut down 4,500 websites of people who were putting up legitimate products and information. It could have been educational resources. These people had their democratic ability to participate in a digital realm interfered with and monkey-wrenched by a government that panicked, was embarrassed and could not seem to deal with any kind of parody from the Yes Men, who are very funny international political comedians.

I would challenge the government. If it believes it can get away with shutting down 4,500 web addresses, then why is it not spending more time with the dictators in Burma and more time with China? It is not sending any kind of message in terms of democratic commitment in a digital age if it will use the levers of government to shut down 4,500 websites in order to get at two hoaxers making fun and making a very fair political parody of the government.

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4 p.m.
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NDP

Glenn Thibeault NDP Sudbury, ON

Mr. Speaker, I would like to thank the hon. member for his great speech. He talked about the shutting down of 4,500 websites. It makes me wonder as to why it would take so long to introduce the legislation we see here, when we know that phishing, for example, is soliciting information from the most vulnerable on the Internet, those who may be seniors and not necessarily astute in the way to deal with some of these issues. They might be giving out their credit card information or other personal information.

Specifically in northern Ontario, PhoneBusters is dealing with so many scams that seniors are encountering. Is there anything else that should be in this bill to ensure that we can protect those who are using the Internet?

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4 p.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, my hon. colleague asked an excellent question. Clearly, from his work in terms of trying to protect consumer interests, he has come to see a pattern, which is that the Conservatives are all talk when it comes to protecting individuals, but they draw up a big zero when it comes to serious issues such as, for example, credit cards and credit card fees, and companies that rip off people, especially senior citizens and people on fixed incomes.

Regarding the issue of this spam bill, this bill should have been law a year ago and we are not even there yet. The government seems to be intent on watering down the bill. After having made the announcement that it was going to do something about spam, I think it felt a bit of push-back from its corporate lobbyists and backers, basically the people in the back rooms who pretty much write the ticket for the government.

We are still seeing huge problems with the issue of phishing. People's personal information is being fraudulently garnered on a large scale. Our senior citizens especially are increasingly vulnerable to this. They are being ripped off and have no place to turn. We do not see a government ombudsman out there protecting senior citizens from credit card fraud. Their information is being stolen on the net and they are being left to fend for themselves against some very large international players, players who can hardly even be tracked down. Because of their practice of taking over third-party computers, they could be in any jurisdiction in the world. Canada obviously needs to play a larger international role.

Canada is certainly embarrassing itself on the international stage. I do not see that the government is very focused on the international role right now.

There needs to be a serious criminal law element and there need to be resources. We can bring in all the criminal laws we want but there need to be resources to ensure that the fraud squads have power. They have to be able to keep up with their criminal competition. Every single day that we are in this House debating, they are actually evolving, changing and covering their tracks.

Senior citizens, people on fixed incomes, people who are open to fraud are left to fend for themselves. The government has left a very large hole.

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4:05 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I am very pleased to rise on this bill, which is now Bill C-28 and was Bill C-27. As has been indicated before, it has been a very long time getting to this point, in fact, several Parliaments and elections, to the point where Canada is pretty much last in the line of modern developed countries that have such legislation.

I listened very carefully to what the member for Timmins—James Bay had to say. He talked about the lack of a broadband strategy on the part of the government and he is absolutely correct. There are many things the current government could have been doing. There are many things that the former Liberal government was doing when John Manley was industry minister.

There are a lot of innovative ideas in the marketplace. For example, a few years ago it was discovered that school boards, some in the United States, were able to set up dark fibre co-ops. In the past the school boards had been under contract with the telcos and were leasing their broadband from the phone companies. They turned the whole relationship upside down. By the school boards doing their own dark fibre builds, they were able to offer gigabyte Internet access and they sold space to the very telcos that they had been leasing from before.

There is nothing difficult about this. The reality is that the fibre can be laid out on the ground or it can be put through the air or through trenches. Trenching is the most expensive way of laying dark fibre.

In rural communities, for example the community of Churchill in my home province, the government does not have any difficulty because the government has crown lands to work with and rights of way at its disposal. A government that is interested in taking the bull by the horns can mandate in very short order that dark fibre be laid over crown land through pipes that the provinces own. It does not have to make the type of effort that private industry has to.

When a private telco wants to lay fibre, it has to negotiate with the landowners. It has to negotiate rights of way. It is a very involved process. The government has none of that to contend with.

Unfortunately, what has happened in this country is that over the years governments have bowed to the pressure of the telcos that want the good customers. As soon as the government tries to develop a proper broadband strategy, the telcos knock on its door and say that the government cannot do that because it is against the principles of free enterprise. The telcos want the right to offer this service in cities and urban centres where they can run the final mile very cheaply to people's homes. They want to be able to offer that to residents and to control the pipes to the hospitals and schools so they can make tons of money, but they do not want to do it in rural areas. They do not want to do it in the north.

That is the conundrum that governments have faced. While they could have taken charge in a more determined way, they have tended to piece off the private companies within their jurisdictions. They have allowed telcos to take some good sections and then the governments are stuck with the less profitable areas.

Even so, I still say that all is not lost. Fibre is cheap. Fibre is not expensive and is easy to build. We had four or five examples of co-ops and school boards in the United States that developed their own fibre. They took the cost of the fibre, turned it around and not only leased out their extra capacity but they still had enough capacity in their system to fulfill their own needs for free and at much faster rates.

What will happen when the final mile is completed and the thick fibre exists, rural hospitals, for example, will be connected. The last time I toured Brandon Hospital, which is in a city of about 50,000 people in my province, it was still sending the electronic imaging for medical tests by bus to one of the smaller hospitals in Neepawa, which I believe is the closest hospital. That should not be the case. Once we have a proper broadband strategy, those images will be sent electronically, rather than being put in a can and sent on a bus to another hospital. They will be able to be sent electronically to the hospital. That is what we are talking about here.

That is what the member for Timmins—James Bay was alluding to when he talked about the broadband strategy that we do not see the government making efforts toward. I am not a big fan of the previous Liberal government but when it comes to issues like broadband, at least there was a pulse in that government. We do not hear anything from the current government.

Let us take a look at the whole area of government online programs. Ten years ago, in 1999, the prime ministers of Great Britain and Australia would put their vision statements on a website indicating where they saw government online programs rolling out and developing over the next 10 years.

I remember putting a resolution before the Manitoba legislature that government programs should be online by the year 2010 and that they should be transactional. It was recognized that there was no point in putting all government information online. There would be tons of information online, some usable, some not, but the true goal was to offer government services on a transactional basis. For example, a student applying for student aid or a student loan would not have to ride the bus from Sudbury to Toronto, for example, to have the privilege of standing in line at a government office to fill out an application.

There was a student aid online program set up in Manitoba, probably 10 years ago, which worked from the very beginning. It worked from the very beginning because it was a low-hanging fruit that dealt with youth. If it had been a program for senior citizens who were less inclined to use computers, it might not have worked so well. However, it worked very well because we were dealing with people who understand computers, who have worked with computers in their daily lives and in school settings since they started school. It was natural for the government to put student aid online. That is an example of a program that worked very well.

Those sorts of programs should have been replicated right across all jurisdictions. We should not be offering them in one province and not in another. The provinces had to get together to talk about whether they could share these programs. I have always said that the national government, rather than individual governments, should pay for one national computer program to be used in all the hospitals across the country. We had software developers in my own province getting a grant from one arm of the government, the Department of Industry, to develop a software program and then turn around and sell it to individual hospitals. The taxpayers had the privilege of paying for a certain software program that was already paid for in part by the taxpayers through one arm of the government to pay multiple times as each hospital bought the program.

That made no sense at all to me. Where was the direction and leadership of the government. There were some signs under the latter part of the Paul Martin government that it was showing some interest in developing programs that could be used on a national basis.

We did encourage the provinces to get together and exchange programs, which worked to a certain extent, but it fell down because of the silo effect. People in their own little silos in their own parts of the government refused to co-operate with anyone else. We would hear arguments that it was contrary to the legislation, that it would need to alter it to the legislation in its jurisdiction or that it did not meet its capacities.

However, there were these off the shelf programs. For example, the Securities Commission in Alberta had a program that Manitoba could simply adapt because it was exactly what it needed. However, we found a lot of silo thinking where people would say that was specialized for Alberta and that they needed to have their own made in Manitoba.

In many ways we find ourselves working against ourselves and perhaps that is why the system is not as advanced at it should be.

A few minutes ago my colleague mentioned consumer legislation. In 2002 in Manitoba, we put together bill 31. I was asked to be the coordinator of it. We had to pull in all the people from four or five departments and we had that typical silo problem. Before we got them together in one room, we heard all the reasons that it could not be done or could never be done. We called them together in one room and asked them what their problems were. In a group environment they did not have a problem.

Therefore, we proceeded with a very big omnibus bill. As a matter of fact, it was designed and crafted under the Uniform Law Conference of Canada suggested wordings and it was the most comprehensive of its type in Canada at the time.

One of the things that got the bill moving a lot quicker was the idea of putting in some consumer legislation. We discovered that there were between one and four states in the United States that had laws that said that if people did not receive their product or service that they ordered on line that the credit card companies would be held responsible to reimburse them. That sounded very intriguing. That was 10 years ago. That was at a time when Internet commerce was still in its infancy and we were trying to encourage it in Manitoba. However, we did not want people to be afraid of it and think that somehow if they bought something on line and they did not get it they would be out their money and would not know how to retrieve it.

In bill 31, we made the credit card companies responsible for any Manitoban's purchases online and if they did not receive the product or the service, the credit card company would be responsible.

Can anyone guess what happened? We went to committee and we heard from the credit card companies. Some of them were not too happy about this but Visa, which is a very big organization, did not put up that much of a fight.

We put forward that particular piece of consumer-friendly legislation and we put forward other pieces of consumer legislation but the reason we brought in this legislation in the first place was to streamline the government and make it more efficient.

We were trying to use the common business identifier. In the old days, the federal government and the provinces were using their own business numbers. We had situations in provincial governments where people were not even paying their PST or GST to the government and, in fact, were in receipt of grants from other parts of the government. This was an intolerable situation and it is something that should never happen.

Therefore, by having a common business identifier and a centralized computing system, we were able to tell if a person had applied for a grant from a certain department and whether the person was in arrears on his or her PST or whether the person owed the taxpayers all sorts of money that he or she had not paid back through taxes. We were trying to put a stop to that. We were also trying to make the system easier to use for businesses so they could file their returns. We were cutting down the paperwork involved in business.

The Conservatives just love to talk about red tape. One of the first things Conservative politicians love to talk for hours about is reducing red tape. The former member for Portage--La Prairie, who was in this House for several years, made his career on cutting red tape in the Manitoba legislature. He also made his career on eliminating the pension plan in the Manitoba legislative assembly. I can tell the House that it was not a very happy group of former MLAs when he moved to the federal scene and proceeded to collect his own federal pension when they in fact had lost their own, but that is an aside.

Nevertheless, the legislation before us today is long overdue. As a matter of fact, we have a danger here that this legislation will need to be re-tweaked. As I mentioned at the beginning of my speech in response to some comments by the member for Timmins—James Bay, nothing in this bill involves any criminality.

We just had a case in the last two weeks where Facebook got a judgment against a Canadian guy for $1 billion. He did a huge amount of spamming on the Facebook system and has made a hero out of himself by getting all kinds of free publicity around the world. What has he done? He has simply declared bankruptcy. We could go to all this trouble of finally passing this bill after all these years and find out that it is totally ineffective when we have people running huge spamming operations in this country right under the noses of the authorities and then, when they finally do end up in court and get sued, they just simply declare bankruptcy and are gone or simply change countries.

Clearly, if we are passing legislation now, we should ensure there are enough penalties in here that will make people responsible and try to correct the behaviours that we are seeing.

However, as we indicated, there are bigger issues. This is an important issue and we need to deal with it, but the member for Timmins—James Bay talked about the other areas, such as the broadband strategy that is lacking from the government. The vision on broadband is very vital to this country and especially to the survival and development of rural Canada. There is also the whole issue of government online programs, which we hear nothing about from the government.

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4:25 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

It is my duty, pursuant to Standing Order 38, to inform the House that the question to be raised tonight at the time of adjournment is as follows: the hon. member for Yukon, Offshore Drilling.

Questions and comments. The hon. member for Sudbury.

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4:25 p.m.
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NDP

Glenn Thibeault NDP Sudbury, ON

Mr. Speaker, my hon. colleague talked about consumer protection. It is important to note that some good electronic commerce does take place on the Internet. Businesses use it effectively for advertising their services and consumers use the electronic commerce medium and will continue to do so. He also talked about the history when he was in Manitoba as an MLA and what they did to implement it there.

Under this bill, I know there will be some regulations that could take away some of the offensive issues of electronic commerce. Individuals would be penalized and private action could take place as well, which is another strong point of this bill.

On the consumer protection piece that we have talked about, does the hon. member feel that there is enough protection in place for the consumers? With his experience, what type of penalties would be fair to ensure we can protect Canadians?

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4:25 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I have always been amazed that governments do not see open opportunities to bring in consumer legislation, particularly when governments are looking to be relevant to their voters and populace. Consumer legislation is the type of legislation that costs the government nothing. We cannot get better results than bringing in consumer legislation that costs the government nothing, makes it look good, and not only protects the consumers but also protects business.

Business organizations tell us that they want to see regulation. Business want to compete with one another but they want to compete on a reasonable level playing field and they want some rules in place. They want to know what the rules are before they spend a lot of money developing their business plans.

If we allow spammers to come in and do whatever they want anytime they want without any sort of penalty, businesses will not be agreeable to that. Whatever we do, we need to have the same rules for everybody, but consumer legislation is something the government does not seem to pay a lot of attention to.

I know the member has introduced a lot of legislation dealing with consumer-type activities and I encourage him to continue doing that but expecting results from the government is something that maybe we should not have too high hopes about.

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4:25 p.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, my hon. colleague gave an excellent overview. He has a very long history in dealing with consumer rights issues. The issue of consumer rights go to the very heart of the need for a digital strategy in this country because more and more consumers and businesses are on line. We are in a digital realm where we need broadband and certain levels and standards.

We see the government with its very retrograde of are there no workhouses for the poor approach to government when what we are hearing from small business is that we need standards on broadband. We have none from the government. We are hearing that we need a plan for net neutrality to ensure that the data being transmitted from small business to small business, from consumer to consumer across this country and around the world has protections in place to ensure people who are paying for service are not being ripped off.

Why does my hon. colleague think it is that the government seems so stuck, not even in the 20th century but in the 19th century, with so many of its attitudes. Meanwhile, the rest of the world, whether we look at South Korea, Sweden, Australia or Europe, is moving far ahead of us. The best the government can offer is that in the next year it will spend whatever is left of the debt, whatever money it can borrow, on prisons while everyone else is building international and national standards for broadband.

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4:30 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, fundamentally it is a government based on free enterprise, and it really does not care about a lot of the activities it should be encouraging. I mentioned the dark fibre builds that can be done on a cooperative basis. School divisions in the United States 10 years ago were paying through the nose for slow broadband service through their telephone companies, and they finally decided to build their own dark fibre network. For a very low cost they built a dark fibre system. They used their entrepreneurial spirit to fill their own needs, while using extra capacity to lease space back.

It is this kind of activity that government should be fostering, but it does not fit the corporate agenda. It does not make the big telephone companies happy, or attract the big money on Bay Street. What interest does the CEO of a big telephone company or a big Bay Street company have in developing a dark fibre co-op in northern Manitoba or northern Saskatchewan?

On native reserves across the country, we could have inexpensive dark fibre builds. Why is it not happening?

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4:30 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

Is the House ready for the question?

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4:30 p.m.
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Some hon. members

Question.

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4:30 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

The question is on the motion. Is it the pleasure of the House to adopt the motion?

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4:30 p.m.
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Some hon. members

Agreed.

Fighting Internet and Wireless Spam ActGovernment Orders

October 18th, 2010 / 4:30 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

I declare the motion carried. Accordingly, the bill stands referred to the Standing Committee on Industry, Science and Technology.

(Motion agreed to, bill read the second time and referred to a committee)