CRTC fines brokers for hiring third party firm that violated national DNCL rules

The Canadian Radio-television and Telecommunications Commission (CRTC) announced Nov. 10 that it has issued citations, warning letters and penalties to firms that used a telemarketing company to recruit prospective clients, which did not respect national Do Not Call List (DNCL) rules.

Without naming names, the CRTC’s chief compliance and enforcement officer said it has taken a number of enforcement actions, including issuing over $100,000 in penalties against several real estate, investment and mortgage agents who used the telemarketing service.

“Individuals and businesses who hire a firm to make calls on their behalf must ensure that the telemarketer is updating its calling list and that no calls are being made to consumers whose telephone numbers have been registered on the Do Not Call List for more than 31 days,” the CRTC writes. “Should they fail to do so, the companies will ultimately be held accountable.”

All told, the CRTC issued 44 citations, 258 warning letters and 23 notices of violation with penalties totaling $103,300.

The CRTC said it received 1,055 complaints between 2012 and 2017 from consumers who received telemarketing calls selling real estate agent, mortgage broker and investment brokerage services. In publishing its guidance, the CRTC also links to the Unsolicited Telecommunications Rules and the National Do not Call List rules as they relate to the insurance industry, and the companion piece, the Unsolicited Telecommunications Rules and the National Do Not Call List rules as they relate to investment dealers, mutual fund dealers and investment and financial advisors.

“Brokerages must implement measures to ensure that their agents comply with the Unsolicited Telecommunications Rules, including ensuring that their agents have access to up-to-date versions of the national Do Not Call List,” they add.

When hiring a third-party telemarketer, they add that brokerages are also responsible for registering with and providing information to the national DNCL operator. They must also become a registered subscriber of the national DNCL and pay all applicable fees to the extent that their agents initiate telemarketing telecommunications.