Undertaking: Gap Inc.

File No.: 9110-2021-00605

Effective date of undertaking: 6 December 2021

Monetary payment amount: $200,000

Under section 21 of An Act to promote the efficiency and adaptability of the Canadian economy by regulating certain activities that discourage reliance on electronic means of carrying out commercial activities, and to amend the Canadian Radio-television and Telecommunications Commission Act, the Competition Act, the Personal Information Protection and Electronic Documents Act and the Telecommunications Act, S.C. 2010, C. 23 (CASL, or the Act)

Person entering into an undertaking

Gap Inc.

Acts and omissions covered by the undertaking and provisions at issue

Gap Inc. has voluntarily entered into an undertaking with the Chief Compliance and Enforcement Officer (CCEO) concerning alleged violations of paragraphs 6(1)(a) and 6(2)(c) and subsections 11(1) and 11(3) of the Act.

Following an investigation, the CCEO alleged that commercial electronic messages (CEMs) were sent or caused to be sent by Gap Inc., between 7 January 2018 and 11 August 2021 to promote sales for Gap Inc. as well as for subsidiaries Banana Republic and Old Navy, without consent from recipients and/or not including an unsubscribe mechanism which could readily be performed,.

Amount owing and summary of other conditions

During the course of the investigation, Gap Inc. has cooperated with the CCEO. Gap Inc. has voluntarily undertaken, pursuant to section 21 of the Act, to resolve the CCEO’s outstanding concerns regarding Gap Inc.’s compliance with the Act and the Electronic Commerce Protection Regulations (CRTC), SOR/2012-36 (the Regulations (CRTC)), including undertaking to comply with, and ensuring that any third party authorized to send a CEM complies with the Act and Regulations (CRTC).

As part of this undertaking, Gap Inc. agreed to make a monetary payment of $200,000 to the Receiver General for Canada in accordance with subsection 28(3) of the Act.

In addition to the monetary payment, and in order to promote compliance with the Act and the Regulations (CRTC), Gap Inc. undertakes to update its compliance program addressing the sending of CEMs. This compliance program has included or will include:

  1. corporate compliance policies and procedures;
  2. training and education for employees of Gap Inc.; and,
  3. monitoring, auditing and reporting mechanisms.

In addition, Gap Inc. will monitor and review its policies and procedures to determine whether any have the effect of providing incentives for employees to violate the Act and the Regulations (CRTC) and, if so, Gap Inc. undertakes to eliminate such incentives.

Gap Inc. will also develop and provide periodic training programs, which include compliance procedures and processes to comply with Act, for employees involved with commercial electronic messages and related compliance.

Finally, Gap Inc. will register and track CEM complaints and the subsequent resolution of those complaints. Gap Inc. will also implement effective corrective measures for compliance failures and within six months of the effective date of the undertaking will supplement the information it has already provided to the CCEO of the corrective measures already implemented to date, as well as information supporting any updates to its Compliance Program.

This undertaking fully and completely resolves all outstanding issues between the Commission and Gap Inc. with respect to Gap Inc.’s compliance with the Act and the Regulations (CRTC) in relation to the CCEO’s investigation into the sending of CEMs for the period up to and including the effective date of this undertaking.

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