Canada.A recently released Canada Post report shows that telemarketing constitutes 23 percent of the total amount of money spent on advertising, in Canada. A large sum out of this total amount is spent on heavy fines for not following proper business ethics. Earlier this year, The Canadian Radio-television and Telecommunications Commission (CRTC) penalized nine companies a total of $149,000 in fines, for non-compliance with DND guidelines. In the light of what happened, we’ve compiled a list of ethical practices to help other Canadian telemarketing agencies avoid a similar fate.

Register with National DNCL

A telemarketer that makes unsolicited calls to Canadian citizens and the client(s) of a telemarketer are required to register with the national Do Not Call List (DNCL). If a third party is handling the subscriptions for a business, then that party also needs to register with DNCL. An identification process precedes this registration process; it takes a mere 10 minutes to complete this process on the national DNCL site.

Make Timely Payments of DNCL Subscription Fee

It is mandatory for a telemarketing agency to maintain an internal do not call list, even if they only make DND exempt calls. As you may already know, DNCL subscription comes with an annual fee; the amount depends on your area code. If a telemarketing agency acquires Canada business lists from a provider, it is best to ensure it is a reliable and only issues numbers that are exempt from the DND list.

Insurance Companies

  • Agents can only ‘promote’ insurance products and services of only one particular insurance company.
  • If you’re telemarketing for a broker, you may promote the services of multiple insurance companies.
  • CRTC assumes the agents of an insurance company are dealing on the behalf of the insurance company in question and holds the company responsible for any violations committed.
  • MGAs to brokers and insurance companies to MGAs telecommunication is exempted from DNCL rules (but not telemarketing rules and ADAD rules).

Mutual Fund Providers and Financial Advisors

  • Such telemarketers fall under the investment industry and need to comply with the guidelines issued by the Investment Industry Regulatory Organization of Canada (IIROC)
  • Mutual fund dealers are liable to third parties and their clients for the acts and omissions of employees for violations committed during a call.
  • The Security Related Business that an investment advisor conducts telephonically is in the name of his investment dealer.
  • Unsolicited Telecommunication apply to the unsolicited calls that Financial Advisors make (to sell a service/product).

Real Estate Companies

  • A real Estate Telemarketing Agent will be exempted from DNCL rules if ‘existing business relationship’ rules, as stated in section 41.7 (2) of the Commission, are applicable.
  • The Commission views telecommunication between a real estate agent and a prospect as a business relationship. That means follow-up calls are B2B in nature, hence exempted from DNCL rules. However, ADAD and Telecommunication rules may apply.

Conclusion

Canadian telemarketing rules are fairly intricate and heavy penalties apply to violators. To operate lawfully in the country, telemarketing agencies must register with DNCL, subscribe to their lists, and follow the unique guidelines issued for their line of business. If you have any questions, or wish to learn more about the protocols we have in place to help ensure our Canada business lists comply with all relevant protocols prescribed for varied industries, feel free to get in touch with one of our representatives.

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