OTTAWA-GATINEAU — Clothing company Gap Inc. has agreed to pay $200,000 for allegedly violating Canada’s anti-spam legislation (CASL), the CRTC announced today.
In addition to agreeing to pay the fine, the U.S.-based global apparel retailer has also implemented corrective measures, a CRTC press release says.
Gap operates several clothing divisions, including Banana Republic and Old Navy.
“CRTC staff issued a warning letter to Gap in December 2018 to inform the company that it had received complaints from Canadians regarding Gap’s electronic messaging practices,” the press release reads.
“In June 2021, in light of continuing submissions from Canadians, the CRTC’s Chief Compliance and Enforcement Officer (CCEO) opened a formal investigation into compliance with CASL.”
The CCEO, Steven Harroun, had reason to believe Gap sent commercial electronic messages (CEMs) to Canadians without the necessary consent between January 2018 and August 2021.
Under CASL rules, companies sending CEMs, such as emails, text messages or messages over social media, must prove consent was obtained.
“Gap’s messages also allegedly did not consistently include either an unsubscribe mechanism or an unsubscribe mechanism which could easily be performed — all of which are required under CASL,” the release says.
“Upon being made aware of the CCEO’s concerns, Gap proactively made changes to its marketing practices and engaged with CRTC staff to reach a settlement.”
“Canada’s anti-spam legislation is essential in today’s e-commerce-driven society. Businesses, both large and small, must comply with CASL rules at all times,” Harroun said in the press release.
“Gap fully cooperated with our investigation, voluntarily entered into an agreement and proactively implemented corrective measures to ensure compliance. Cooperation is at the core of our approach to compliance as it avoids lengthy investigations and obtains timely results for Canadians,” Harroun added.
Since CASL came into force in 2014, the CRTC’s enforcement efforts have resulted in payments of more than $1.4 million, including approximately $805,000 in administrative monetary penalties and $668,000 from negotiated undertakings, according to the press release.
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