“Individuals can’t hide behind their company’s structure or online entities”
OTTAWA – The CRTC has nailed the corporate director of a business caught violating Canada's anti-spam legislation (CASL), the first time that an individual is held liable under CASL for violations committed by a corporation.
The Commission on Tuesday fined Brian Conley $100,000 after an investigation determined that his discount deals website nCrowd sent unsolicited commercial emails to Canadians without their consent. In addition, the unsubscribe mechanism in the emails did not function properly.
Operating under multiple business names such as nCrowd, Teambuy, DealFind, and Dealathons, the emails offered promotional vouchers for discounted rates on products and services ranging from electronics to beauty treatments redeemable from third-party suppliers. Those offers were advertised in multiple email campaigns, repeatedly spamming Canadians.
The CRTC’s investigation was launched after the Spam Reporting Centre received 246 submissions about nCrowd or its subsidiaries between September 25, 2014 and June 21, 2015. Despite protests to the contrary from Conley, the Commission found that he is liable for the violations.
“While nCrowd ceased operations and dissolved in the months following the period during which the violations occurred, the investigation report indicates that Mr. Conley continued to be involved with nCrowd’s remaining assets and with similar lines of business”, reads the decision. “Mr. Conley did not provide evidence to the contrary in his representations.”
The $100,000 administrative monetary penalty is due by May 23, 2019.
“As this decision shows, individuals can’t hide behind their company’s structure or online entities”, added CRTC chief compliance and enforcement officer Steven Harroun, in a statement. “Today’s outcome sends a strong message that they can – and will – be held liable for the spam the companies they control send to Canadians. Those who send commercial emails to Canadians must comply with Canada’s anti-spam law at all times, or face the consequences.”
