With businesses increasingly turning to text messaging to engage customers, it’s crucial to understand the regulatory frameworks that govern SMS communications. Canada and the United States both enforce strict rules to protect consumers from spam and unwanted messages—but their approaches differ significantly. Here’s a high-level comparison of what organizations need to know when operating in either country.
SMS Compliance in Canada
In Canada, CASL (Canada’s Anti-Spam Legislation) sets the gold standard for SMS marketing compliance. All commercial text messages are considered “commercial electronic messages” (CEMs) and must meet the following requirements:
- Express Consent: Businesses must obtain clear and informed consent before sending texts. Implied consent is limited and time-bound.
- Sender Identification: Messages must clearly identify the sender and provide a way to contact them.
- Opt-Out Mechanism: SMS programs must support opt-out commands like “STOP” (and French equivalents like “ARRET”)—and act on them immediately.
- Double Opt-In: While not mandatory, double opt-in is considered best practice and is often expected by carriers.
- Bilingual Compliance: Programs must support both English and French keywords for opt-out and help requests.
- Quiet Hours: Promotional texts should only be sent between 9am and 9pm local time.
- Content Restrictions: Canadian carriers follow CTIA-like SHAFT guidelines, restricting content related to sex, hate, alcohol, firearms, and tobacco without prior approvals or gating.
Industry enforcement is supported by the CRTC, Competition Bureau, and the Canadian Telecommunications Association (CTA), which collaborates with carriers to set carrier-specific SMS requirements.
SMS Compliance in the U.S.
In the U.S., text messaging compliance falls under the TCPA (Telephone Consumer Protection Act) and is enforced by the FCC and carriers through CTIA guidelines. Key points include:
- Express Written Consent: Required for marketing messages, consent must be documented and unambiguous.
- Opt-Out Requirements: “STOP” and common variations must be recognized, and opt-outs honored without delay.
- Toll-Free Number Verification: As of 2023, all toll-free SMS numbers must be verified to avoid carrier throttling and message filtering.
- Content Rules: The CTIA restricts SHAFT content unless special approval is obtained.
- Identification and Disclaimers: Initial and recurring messages should clearly identify the sender and disclose that “Msg&Data rates may apply.”
- Quiet Hours: Texts should only be sent between 8am and 9pm local time to comply with TCPA standards and minimize consumer complaints.
- Compliance Across States: In addition to federal laws, state-specific texting laws (like Florida’s FTSA) are emerging and must be considered.
Why It Matters
Non-compliance in either country can lead to significant penalties, loss of consumer trust, and message blocking by carriers. Whether you’re sending marketing offers, customer alerts, or appointment reminders, aligning with local regulations is key to message deliverability and brand reputation.
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