Chapter 9: Marketing: the impact of Legislation and Regulation

Question 1

Personal information protection and electronic documents act (PIPEDA)

Answer 1

Obtain clear consent of individual before you collect information

Question 2

Canada Anti Spam legislation (CASL)

Answer 2

help protection from spam while ensuring business can continue to compete in global marketplace

Question 3

Canadian Code of Advertising standard

(14)

Answer 3

1. Accuracy and clarity
2. Disguised advertising technique
3. Price claims
4. Bait and switch: providing consumers with attractive offer but unable to provide price indicated
5. Guarantees
6. Comparative advertising
7. Testimonials
8. Professional or scientific claims
9. Imitation
10. Safety
11. Superstition and fears
12. Advertising to children
13. Advertising to minors
14. Unacceptable depictions and portrayals

Question 4

What is a “Bait and Switch”?

Answer 4

A bait and switch is an advertisement that misrepresents the consumer’s opportunity to purchase the goods and services at the terms presented.

Question 5

List five examples of public relations materials

Answer 5

Any five of the following:

• Business cards
• Newspaper ad, whether it is a classified ad or display ad
• A Sign (e.g., on a building or vehicle)
• Billboard or poster
• Bench ad
• A Promotional email
• Radio ad
• Magazine ad
• Flyer or Brochure
• Website
• An Ad placed on a website
• An Advertorial (an article that is an advertisement)

Question 6

What must be included in public relations materials?

(4)

Answer 6

• Brokerage name (if a franchise state that it is independently owned and operated)
• Brokerage license number
• Agent or broker name as registered with FSRA
• Agent or broker title – for example, mortgage agent or mortgage broker

Question 7

What Regulation deals with misleading advertising?

Answer 7

Section 9 of Regulation 187/08 states, “A mortgage broker or agent shall not include false, misleading or deceptive information in their public relations materials.”

Question 8

What government agencies are responsible for enforcing CASL

(3)

Answer 8

There are three government agencies responsible for enforcement of the law. The law allows:
- The Canadian Radio-television and Telecommunications Commission (CRTC) to issue administrative monetary penalties for violations of the anti-spam law.
- The Competition Bureau to seek administrative monetary penalties or criminal sanctions under the Competition Act.
- The Office of the Privacy Commissioner to exercise powers under the Personal Information Protection and Electronic Documents Act.