Canada’s CTA Messaging Compliance: A Brief Overview

What Is the Canadian Telecommunications Association (CTA)

The Canadian Telecommunications Association (CTA) represents wireless service providers (WSP) and telecommunications companies across Canada. It is crucial to educate the public on telecommunication issues, conduct research, and manage Canadian Common Short Codes (CSC).

As the Short Code Administrator in Canada, the CTA oversees the lease and use of shortcodes. Anyone leasing a short code to send or receive SMS messages must comply with the CTA’s rules and guidelines.

Understanding Short Codes

A shortcode is a specialized phone number of five or six digits for sending or receiving SMS messages. These codes are ideal for organizations that need to send large volumes of messages or time-sensitive notifications. Short codes are widely used for various purposes, including:

1. Advertising and Promotions: Companies use shortcodes to engage customers with promotional campaigns.
2. Two-Factor Authentication (2FA): Shortcodes facilitate secure login by sending one-time passwords.
3. Account Notifications: Businesses can send alerts about account activities or payment reminders.
4. Appointment Reminders: Shortcodes help in sending timely reminders for appointments.

Consumers can opt-in to receive SMS notifications from a company by texting the shortcode. SMS, or Short Message Service, allows users to exchange brief text messages, typically up to 160 characters. In Canada, sending SMS messages requires explicit consumer consent, which is crucial for compliance.

What Does the CTA Require?

Organizations leasing a short code must comply with various CTA requirements to ensure legal and efficient communication. The main requirements include:

1. Maintaining a connection to carrier networks.
2. Submitting a detailed application form.
3. Paying a non-refundable deposit of CAD 1,500.
4. Adhering to the CSC Code of Conduct.
5. Complying with Canada’s Anti-Spam Legislation (CASL).

At least two separate carriers must agree to participate in the program. Each requirement ensures transparency, legal compliance, and efficient handling of SMS communications in Canada.

CTA Requirements for Short Code Usage

To ensure compliance with the CTA’s regulations, organizations must adhere to several key requirements:

1. Maintain Connection to Carrier Networks
   Organizations must establish and maintain a connection with carrier networks to operate a short code effectively. This involves ensuring seamless communication and message delivery.
2. Submit an Application Form
   The CTA application form requires detailed information about your short code program, including:
   • Opt-in methods
   • SMS frequency
   • Sample messages

The application also requires carrier preferences and descriptions of the program. Depending on the program type, a non-refundable deposit may be required.

1. CSC Code of Conduct Compliance
   Once the shortcode is leased, the business must ensure it follows the CSC Code of Conduct, which includes:
   • User opt-in before sending SMS messages
   • Opt-out option via a simple “STOP” reply
   • CTA permission before altering a short code
   • Clear cost disclosure for each message

Violations of the CSC Code of Conduct may result in the revocation of the shortcode and potential penalties.

1. Pay a Non-Refundable Deposit
   A non-refundable deposit of CAD 1,500, plus applicable taxes, is required to lease a short code. This deposit covers the first three months of the lease. For programs promoted as contests, the deposit increases to CAD 3,000 plus taxes. Not-for-profit organizations and registered charities benefit from reduced fees.
   However, this deposit is only mandatory for Premium Subscription programs and does not apply to most contests administered via Short Code.
2. Adhere to the CSC Code of Conduct
   The Common Short Code (CSC) Code of Conduct mandates several compliance measures:
   • Opt-In Requirement: Users must actively opt-in to receive messages.
   • Opt-Out Mechanism: Consumers should be able to opt-out by texting “STOP” to the shortcode.
   • Transparency: Clearly state the cost of sending messages.
   • Customer Support: Provide support through email, a website, or a toll-free number, and allow users to request help or information by texting “HELP” or “INFO.”
   • Content Restrictions: Messages must be concise, with a maximum of 320 characters for general content and 160 characters for mandatory customer support keywords.
3. Follow Canadian Common Short Code Application Guidelines
   The CTA’s guidelines include:
   • Monthly Lease Fees: After the initial period, lease fees are CAD 350 per month. For contests, the fee is CAD 700 per month. However, this is only mandatory for Premium Subscription programs and does not apply to most contests administered via Short Code.
   • Pre-Launch Testing: Submit a testing document within ten days of the short code’s launch to ensure compliance with the CTA’s standards.
   • Ongoing Compliance: The CTA conducts regular compliance checks throughout the lease period. Non-compliance can lead to penalties or revocation of the shortcode.
4.  Comply with Canada’s Anti-Spam Legislation (CASL)
   CASL governs commercial electronic messages (CEMs), including SMS. Compliance involves:
   • Consent: Obtain express or implied consent before sending SMS messages. Express consent is obtained through specific actions by the consumer, while implied consent arises from existing business relationships.
   • Identification: Include sender identification and contact details in every message.
   • Unsubscribe Mechanism: Messages must include an opt-out option, such as replying with “STOP.”

Complying with Canada’s Anti-Spam Legislation (CASL)

One of the most critical aspects of CTA messaging compliance is adhering to Canada’s Anti-Spam Legislation (CASL), which governs the sending of Commercial Electronic Messages (CEMs), including SMS. CASL Requirements:

• Obtaining consent before sending commercial SMS messages. This can be done through express consent (e.g., by opting into a service) or implied consent (e.g., existing business relationships).
• Identifying information in every message, including details on who is sending the message and how to contact the sender.
• Providing an easy opt-out mechanism, such as replying with “STOP.”

Failure to comply with CASL could result in significant penalties, with fines of up to CAD 1 million for individuals and up to CAD 10 million for businesses.

How to Ensure Full Compliance with CTA Messaging Regulations

To ensure compliance, businesses should follow these key steps:

1. Submit a Detailed Application
   Provide comprehensive information in the application form, including details about your short code usage, the carriers involved, and the target audience. This transparency helps the CTA assess your program’s compliance.
2. Follow the CSC Code of Conduct
   Ensure that your short code program adheres to the CSC Code of Conduct by implementing opt-in and opt-out mechanisms, providing clear cost information, and maintaining customer support.
3. Adhere to Common Short Code Application Guidelines
   Pay attention to lease fees, testing requirements, and ongoing compliance to avoid penalties. Regularly review and update your practices to align with the CTA’s standards. You can check them here.
4. Comply with CASL
   Ensure that all commercial SMS messages meet CASL’s requirements, including obtaining proper consent, including identification information, and providing an easy opt-out method.

Frequently Asked Questions (FAQs)

1. What is the CTA’s role in SMS communication?
   The CTA acts as the administrator for shortcodes in Canada, ensuring businesses adhere to proper rules and guidelines while leasing shortcodes to communicate with Canadian residents.
2. Do I need to pay a fee to lease a short code?
   Yes. Depending on your organization type and program, you may need to pay a non-refundable deposit of CAD 1,500, plus monthly fees ranging from CAD 250 to CAD 700.
3. What happens if I don’t comply with CTA requirements?
   Non-compliance with CTA regulations or CASL could result in fines, the revocation of your short code lease, or even legal penalties.
4. How do I obtain consent for sending SMS messages?
   Consent can be obtained through various methods, such as having consumers text a specific keyword or providing their phone number through an online form. Express or implied consent must be gained before sending messages.
5. What keywords are mandatory in SMS programs?
   Businesses must support keywords such as STOP, HELP, INFO, ARRET, and AIDE to ensure users can easily opt-out or get assistance.

Wrapping Up

Adhering to Canada CTA messaging compliance is crucial for any business using SMS communication to engage with Canadian residents. From leasing a short code and obtaining consent to following the CSC Code of Conduct and CASL regulations, ensuring compliance protects your business from penalties while providing a positive experience for your customers. By staying within the CTA’s guidelines, you can securely and legally connect with your audience through SMS, all while maintaining the highest standards of messaging practices in Canada.

For additional support, resources, & more, consider utilizing GetTerms. For more information, you can visit our website here. We offer a simple solution, ensuring you meet legal standards while maintaining user confidence in your data handling practices. Create an account and get started in 5 minutes. For any further questions or assistance, the GetTerms support team is always ready to help.