Bill C-27 the 'Anti-Spam Bill'

E-mail is a wonderful technology which, in just over a decade, has completely changed our lives. However, many of the benefits of e-mail have been offset by the problem of spam (unwanted and unsolicited commercial e-mails). According to a MessageLabs report of September 2009, spam accounted for as much as 86% of global e-mail traffic. Unfortunately, Canada is, in part, responsible for this problem. Canada ranks as one of the top originating countries for spam; the Cisco 2008 Annual Security Report ranked Canada fourth on the “Spam by Originating Country” list. Late last year, Facebook won $873 million (U.S.) in damages in a U.S. court, arising from the activities of a spammer based in Canada. That the case was prosecuted in the United States, and not Canada, speaks to the lack of Canadian legislation in place to prevent spam.

The high volume of spam in recent years has negatively affected the productivity of Internet technologies like e-mail. When a high volume of e-mail is spam, networks slow down, people waste time (at home and work as they delete unwanted e-mails), and companies are forced to spend considerable money on systems to prevent spam from entering their networks.

The high volume of spam in recent years has also impeded the full potential of the Internet as a platform for commercial and non-commercial use. Spam is more than just unwanted e-mail; it is often used as a vehicle to perpetrate fraud on Canadians. It can lead to online fraud by luring individuals to counterfeit websites (phishing), the theft of personal data to rob bank and credit card accounts (identity theft), the collection of personal information through illicit access to computer systems (spyware), and false representations in the online marketplace. Canadian businesses also suffer. Businesses are the victims of the counterfeiting of their corporate websites to defraud individuals and other businesses (spoofing). Spam-borne viruses and other malicious software (malware) are used to operate networks of “zombie” computers (botnets) without their owners’ knowledge. This undermines confidence in the Internet as a platform for personal and business use.

In response to this problem, the Government of Canada launched a Task Force on Spam to consult Canadians. The Task Force was given one year to consult and report. In May of 2005, the Task Force on Spam reported its findings and recommended actions required to combat spam.

The government is acting on these recommendations by introducing Bill C-27, a piece of anti-spam legislation entitled the Electronic Commerce Protection Act (ECPA). The proposed legislation will deter the most damaging form of spam from occurring in Canada and will help drive spammers out of Canada. This legislation addresses the recommendations of the Task Force on Spam, which brought together industry, consumers and academic experts, and is a comprehensive package of measures to combat threats to the online economy. Successful legislative models in other countries were also examined and taken into account when drafting the bill.

This legislation will allow Industry Canada to act as a “national coordinating body”, in order educate consumers, track and analyze statistics and trends, and lead policy oversight and coordination.

The legislation will also facilitate the establishment of a non-government agency, the Spam Reporting Centre, which will receive reports of spam and related threats, allowing it to collect evidence and gather intelligence to assist the three reporting agencies (the Canadian Radio-television and Telecommunications Commission, the Competition Bureau, and the Office of the Privacy Commissioner) with the investigation and prosecution of offences.

It is important to note that the ECPA does not apply to non-commercial activity. Political parties and charities that contact Canadians through e-mail will not be subject to the ECPA, provided these e-mails do not involve selling or promoting a product.

Bill C-27 is currently in front of the Industry Committee, where a wide range of witnesses have been heard from. The Committee is expected to review the legislation clause-by-clause on Monday, October 19th, 2009.

If adopted by Parliament, Bill C-27 will go a long way to combating spam and spam-related threats. Based on the experience of other countries with similar legislation, a reduction in spam is quickly expected. When Australia adopted similar legislation in 2004, it dropped out of the world’s top 10 spam originating countries and major spammers closed their Australian operations altogether. While the legislation will not eliminate spam entirely, Canadians will see a reduction in the amount of spam received. Equally important, the legislation will decrease the most damaging forms of spam from originating in Canada, and will help drive spammers, along with the associated illegal activity, out of Canada.

The Internet has become the primary platform for online commerce and general communications. Canada has had a long history of global leadership in the communications sector. E-commerce is now a major part of the Canadian economy, with billions of dollars of goods and services being sold over the Internet each year in Canada. If adopted by Parliament, this legislation will allow Canada to continue that leadership, ensuring we remain a secure locale for e-commerce and for Canadians. It’s time for Canadian law to catch up to the Internet age.

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