OTTAWA, December 13, 2004 -- The Honourable David L. Emerson, Minister of Industry, today announced that the Government of Canada is introducing legislation that would reduce the volume of unsolicited telemarketing calls Canadians receive at home. The amendments to the Telecommunications Act will, if enacted by Parliament, provide the Canadian Radio-television and Telecommunications Commission (CRTC) with the ability to establish a national Do Not Call List. It will also give the CRTC the power to levy substantial penalties against telemarketers who do not follow the rules, and to contract with a private sector third party to operate the service. "We want to give Canadians an easy and effective way to protect their privacy and stop intrusive telemarketing," said Minister Emerson. "Canadians overwhelmingly want this, and we believe we've found a way to deliver what they want in a fair, cost-effective manner." In a recent Environics survey, 79 percent of Canadians surveyed said they support a national Do Not Call List, and 66 percent of those surveyed said they would sign up for such a service. If the bill becomes law, the CRTC will then consult Canadians on the implementation of a national Do Not Call List. The Commission plans to start such a consultative process shortly after the bill is adopted by Parliament. Such consultations could include the question of whether any organizations should be exempt from a Do Not Call List. The CRTC already has the responsibility for regulating telemarketing, but earlier this year it indicated (Telecom Decision 2004-35) that while a national Do Not Call List had considerable merit, the Commission did not have the correct authority to establish and maintain such a list. The proposed legislation addresses this issue. Once the list is operational, Canadians who do not wish to receive calls from companies offering goods and services will be able to add their telephone number to a single, centralized list that telemarketers will be required to download regularly and respect. Both the United States and the United Kingdom have similar systems. Penalties of $1,500 per offending call for individuals and $15,000 per offending call for corporations would be imposed for telemarketers who did not respect the list. Funding for the operation of the list would be obtained on a cost-recovery basis from telemarketers themselves. "A national Do Not Call List that operates as a system Canadians opt into is preferable to an approach that imposes a heavier regulatory burden," said Minister Emerson. "This is an example of the government's commitment to smart regulation, and the size of the penalties show we are serious about addressing the issue of unwanted telemarketing." Interested parties with views on how the list should operate should make their views known to the CRTC during the consultation process. Information for consumers about the existing rules on telemarketing can be found on the CRTC Web site at http://www.crtc.gc.ca. - 30 - For further information, please contact: Stéphanie Leblanc Office of the Honourable David L. Emerson Minister of Industry (613) 995-9001 Media Relations Industry Canada (613) 943-2502 BACKGROUNDER Legislation to Facilitate the Creation of a National Do Not Call List Unsolicited telemarketing has become a serious irritant for many Canadians. In a survey by Environics in 2003, 97 percent of respondents reported a negative reaction toward unsolicited calls -- 38 percent said they tolerate the calls, 35 percent reported being annoyed by them, and 24 percent said they hated receiving them. The majority of respondents (79 percent) supported the creation of a national Do Not Call List, and 66 percent indicated they would likely add their number to the list. The amendments being proposed to the Telecommunications Act strengthen the role of the Canadian Radio-television and Telecommunications Commission (CRTC) under the Act with respect to "the regulation of telecommunications facilities for unsolicited telecommunications to prevent undue inconvenience or nuisance." In 1994, the CRTC imposed limitations on telemarketing, including a requirement that telemarketers maintain individual Do Not Call lists. Many consumers consider this practice unsatisfactory, as it requires them to enlist with each telemarketer separately and potentially add their phone number to hundreds of lists. This year, in Telecom Decision CRTC 2004-35, Review of Telemarketing Rules, the CRTC concluded that a national Do Not Call List has considerable merit. However, the commission found it could not establish a list without changes to legislation that would enable it to impose fines for non-compliance, establish a third-party administrator to operate a database, and set fees to recover costs associated with maintaining the list. In its decision, the CRTC recommended that the government make it possible to adopt the more effective approach of a Do Not Call List through legislation. In the interim, it established new rules to reinforce the existing regime. The Canadian Marketing Association (CMA), the Canadian Bankers Association and telemarketing firms representing charities appealed the decision on new rules, and the CMA also requested that the government amend legislation to provide for a national list. In response, the CRTC stayed its interim rules on September 28, 2004. The decision by the government to amend the Telecommunications Act to facilitate the establishment of a national Do Not Call List resolves the issue. Once the legislation is in place, it is expected that the CRTC will undertake consultations to find an administrator, to determine how the list will operate and how much it will cost, and to consider whether any types of calls should be exempt from the Do Not Call List. The implementation of the list by the CRTC will follow these deliberations in due course. Environics Survey Results on Telemarketing (Survey December 2003/Results January 2004)> Highlights 81 percent of Canadians surveyed reported they have received an unsolicited call; 79 percent of respondents would support a national Do Not Call List; 66 percent would be likely to sign up for this service; Among those who would likely sign up for the Do Not Call List, 66 percent would not want to receive calls from charities calling to raise money; 56 percent of respondents feel that telemarketers should pay for the operations and maintenance of the national Do Not Call List; 23 percent believe it should be funded by consumers who sign up; 8 percent think it should be the federal government's or telephone companies' responsibility. On average, respondents received 3.43 unsolicited phone calls in a typical week. The following subgroups appear to receive more calls: residents of Ontario (4.54); Canadians with household incomes of $80,000 or more (4.99); and Anglophones (4.08), as compared to Francophones (1.71). Those who received at least one unsolicited call per week are more likely to report receiving calls from charities (44 percent) than from firms they have (24 percent) or have not (27 percent) done business with in the past. A majority of respondents report they have a negative reaction toward unsolicited call, as: 38 percent indicate they tolerate these calls; 35 percent reveal the calls are annoying; and 24 percent report they hate receiving them. With regard to complaints, 14 percent of respondents reported they have tried to make a complaint regarding an unsolicited call. Among this sub-group, 39 percent indicated their complaint was resolved and 59 percent indicated it was not. This survey of 2002 Canadians 18 years of age and over was carried out by telephone December 11-29, 2003. Results to a survey of this size can be considered accurate to within plus or minus 2.2 percent, 19 times out of 20.
