Canadian Radio-television and Telecommunications Commission
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CRTC announces that Xentel has paid a $500,000 penalty for misuse of the charity exemption to the National Do Not Call List Rules

OTTAWA-GATINEAU, December 17, 2010 — The Canadian Radio-television and Telecommunications Commission (CRTC) today announced that it has reached a settlement with Xentel DM Inc. over the company’s unauthorized telemarketing practices. The CRTC has issued a notice of violation, and Xentel has paid an administrative monetary penalty of $500,000 to the Receiver General for Canada.

A CRTC investigation found that Xentel made calls to consumers who had registered their numbers on the National Do Not Call List (DNCL) and promoted events on its own behalf or on the behalf of organizations that were not registered as charities with the Canada Revenue Agency. The National DNCL Rules provide an exemption for registered charities.

“The rules are quite clear as to what types of calls are exempt from the National Do Not Call List,” said Andrea Rosen, the CRTC’s Chief Telecommunications Enforcement Officer. “We appreciate Xentel’s commitment to change its telemarketing practices in order to address our concerns. Education is an important part of any compliance program, and we are working with the industry to make certain that telemarketers understand their responsibilities.”

As part of Xentel’s voluntary cooperation with the CRTC, the company has agreed to publish corrective notices in newspapers and on its website. It will also implement a compliance program to ensure that its telemarketing practices adhere to the rules and verify that its representatives are properly trained.

The CRTC investigates complaints and applies the Unsolicited Telecommunications Rules, which include the National DNCL Rules, in order to reduce unwanted calls to Canadians. According to the established enforcement process, the CRTC can discuss corrective actions with telemarketers, which may lead to a settlement that includes a monetary payment.

Consumers may register on the National DNCL or file a complaint about a telemarketer by calling 1-866-580-DNCL (3625) or visiting www.lnnte-dncl.gc.ca.

Notice of violation

The CRTC

The CRTC is an independent public authority that regulates and supervises broadcasting and telecommunications in Canada.

Reference documents:

Key facts for consumers

Key facts for regular telemarketers

Key facts for exempt telemarketers

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