1. CASL – Challenges for Business and Not-for- Profits Presented to Lexpert Anti-Spam Program By Scott Smith Director, Intellectual Property and Innovation Policy April 30, 2014

2. Threats to Competitiveness May impede start-up businesses from launching in Canada. May impede the development of new Internet-based marketing models. Could discourage some server operators from operating facilities in Canada. Likely that some legitimate and even useful online communication will be prohibited due to the wide scope of the bill. Pace of electronic commerce in Canada will stagnate. Regulatory compliance spending will increase disproportionately. Puts Canadian companies at a competitive disadvantage globally.

3. CASL – A Frustration for Business Several small business people I have talked to, and myself, are nervous and worried about the gravity and potential cost of violations, and there is still some vagueness in the bill that leaves a fair margin for interpretation. Furthermore, this is encroaching on our basic freedoms...Reaching out to communicate with someone seems like a basic right, and a basic human function. Seems like I can't find someone's email and send them a message about a potential product, service or opportunity. That pretty much shuts down commerce in Canada.

4. CASL Compliance Capabilities –Access to resources Ambiguities –Navigating the nuances Risk tolerance –Drawing a line in the sand

5. Some business stats: Total Employer Businesses – 1,107,540 Another 1 million+ businesses are indeterminate 98.22% are small business 1.64% are medium size business 0.14% are large business 75% Canadian Businesses have less than 10 employees. 98% of Canadians have access to broadband

6. So where’s the problem? Only 45% of Canadian businesses have an online presence

7. Some Not-for-Profit stats: Business – 5512 Unions – 3403 Social – 20,448 Professional – 2442 Religious – 24,246 Membership – 6398 Vocational – 1707 Political – 350 (oh yeah, they’re exempt)

8. Ambiguities: The CRTC vs RIAS Definition of a CEM Existing consents Unsubscribe – only CEMs? Or all service messages? Unsubscribe and resubscribe – the revolving door – implied vs express consent On behalf of – have no role vs. play a material role On behalf of – seeking consent – identification of third party? Proof of consent Record retention Social Media Sites

9. Operational compliance - Risk tolerance Communications audit Rely on existing consents vs. acquisition Database management Communications protocols – preventing employee error

10. Thank you! Questions?