John Gustavson, president and CEO of the CMA, warned a crowd at the organization’s National Convention and Trade Show yesterday against unethical and illegal practices. He also urged members to follow CMA standards which are being enforced as part of the organization’s new agenda.
The warning comes on the heels of the recent passage of the Personal Information and Electronic Documents Act, which takes effect Jan. 1, 2001. The legislation applies to any commercial activity that includes information about an identifiable individual. The act requires that the individual must give consent before personal information is collected, used, or transferred to a third party. There is a limited exemption for business-to-business information.
The provisions of the act apply to such federally regulated private sectors as transportation, telecommunications, and some financial institutions as well as inter-provincial trade. The provinces have three years to pass similar legislation or comply with the federal law.
Gustavson said there will be a limited impact between Canada and the United States as a result of the bill.
He said that an American company with a physical presence in Canada must comply with the regulations and that all American companies, whether CMA members or not, must comply. About 20% of the CMA membership is made up of American companies.
In addition, all members must agree to follow certain ethical standards and practices. The exception to compliance is an American company than has no resident presence and is not a CMA member.
Gustavson said he has organized a task force to look into proactive enforcement within the climate of the act. Currently, members are presumed to be ethical until a complaint is received, he said.
He also pointed out the seeming conflict of interest in investigating unethical conduct of a CMA member whose donation the organization relies.
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